The U.S-based tech and social media giant Facebook made history on Monday by reaching the m-cap valuation of $1 trillion for the first time ever. The tech company hit a market capitalization value of $1.01 trillion with its shares closing at USD 355.64 on Monday which were up by 4.18 percent. Facebook’s m-cap valuation makes it the fifth major U.S. company to reach the milestone after tech giants Apple, Microsoft, Amazon, and Google’s parent company, Alphabet.
Facebook, Inc.’s shares jumped by 4.2% on Monday after a U.S. judge dismissed the antitrust action against Facebook that was filed last year by the federal and state regulatory that aimed at forcing the company to sell Instagram and WhatsApp. According to the judge, Federal Trade Commission (FTC) had failed to demonstrate the monopoly power of Facebook in the social network market. Facebook’s shares have recorded a remarkable 30% increase this year amid the COVID-19 pandemic as people increasingly preferred to use Facebook, Instagram, and WhatsApp to stay in touch with friends and loved ones and manage businesses. Facebook’s revenue is majorly generated from personalized and targeted advertisements that are displayed on Facebook and Instagram, curated according to every user and their search history. The company also has a robust hardware business that develops Oculus VR headsets, smart glasses and portal video calling device. Facebook went public through an IPO in May 2012 with a market capitalization of USD 104 billion then. Over the years, Facebook has faced a lot of backlash in terms of user data and scandals but it has bounced back radically with a continuously growing user base and a steady increase in the year-on-year revenue.
Facebook, Inc. is the youngest company to join the trillion m-cap club by reaching USD 1 trillion in just 17 years since its inception in 2004. Since 2018, the stock price of Facebook has surged more than 90%.
