Facebook benefits from pandemic ad spending but Apple could spoil its party

FILE PHOTO: The Facebook logo is displayed on a mobile phone in this picture illustration taken December 2, 2019. REUTERS/Johanna Geron/Illustration

(Reuters) -Facebook Inc beat Wall Street expectations for both quarterly revenue and profit on Wednesday but warned that growth later this year could "significantly" decline as new Apple Inc privacy policies will make it more difficult to target ads.

A surge in digital ad spending during the pandemic when consumers shopped online, along with higher ad prices, helped Facebook revenue surge 48%. Looking ahead, the world's largest social network said it will focus on building e-commerce features to expand beyond its ad business.