Facebook has become $1 trillion company in just 17 years
Mark Zuckerberg-led Facebook now has a market value of over $1 trillion, thanks to a 4.2 percent uptick in its share price on Monday. Remarkably, it has achieved this milestone faster than any other technology firm. The rise comes alongside a judge's dismissal of two complaints against Facebook filed by the Federal Trade Commission (FTC) and state attorney generals alleging monopolistic practices.
Facebook's share price has recorded a 30 percent increase this year owing to people's increased dependency on its offerings including WhatsApp and Instagram to stay in touch with friends and conduct business during the COVID-19 pandemic. Facebook's share price went up by 4.2 percent to $355.64 on Monday. This was the highest increase in the last two months.
Interestingly, only a handful of American tech companies have crossed the magical 13 digit valuation threshold. Apple achieved the feat three years ago; subsequently it was joined by Alphabet Inc., Amazon, and Microsoft in the big league. Meanwhile, Facebook is the youngest company to achieve the milestone valuation just 17 years after Zuckerberg co-founded the company at his Harvard University dorm in 2004.
Bloomberg reported that Monday's jump in share price can be attributed to the dismissal of two complaints against Facebook by a judge. The complaints were filed by the FTC and 46 state attorneys general in December alleging that Facebook's size as a company has resulted in consumer harms including reduced product quality, thereby amounting to anti-competitive behavior.
The complaints were dismissed since the FTC failed to establish that Facebook has a monopoly in social networking. The agency's claim that Facebook controls over 60 percent of a vaguely defined market was deemed "too speculative and conclusory to go forward." The FTC can refile the complaint within 30 days. Nevertheless, investors' interest in the social media giant shows no signs of diminishing.
