The news that Facebook’s market capitalization has exceeded $1 trillion for the first time means that Facebook’s share price has once again reached a new high, and marks a new height in its development. How should it operate in the future? Next, let’s learn more about it.
Facebook’s market value broke 1 trillion dollars
In the early morning of June 29, Beijing time, Facebook shares closed up 4.18% to $355.64 on Monday, and its market value exceeded $1 trillion for the first time.
Facebook is reportedly the fifth U.S. company to reach the milestone after Apple, Microsoft, Amazon and Google’s parent company Alphabet, and the only one founded in the 1990s, making it the youngest company to do so.
The stock’s rise comes as a U.S. court announced a ruling. On Monday, a U.S. federal court dismissed an antitrust lawsuit brought by the Federal Trade Commission (FTC) against Facebook, as well as a similar lawsuit filed jointly by 48 state attorneys general. The judge said the FTC did not provide enough evidence to prove that Facebook was in a monopolistic position.
The ruling at least temporarily helped Facebook escape the most serious regulatory threat to its business at a time of widespread repression of the U.S. tech giant.
Facebook made its initial public offering in May 2012, raising $104 billion in market value on the first day of its IPO.
Facebook (Facebook) Inc. was founded on Feb. 4, 2004, and is headquartered in Menlo Park, California, with the launch of Facebook, a desktop chat software for Windows, on March 6, 2012. Mark Zuckerberg is the main founder.
How should Facebook operate in the future?
Recently, Facebook released its financial results for the fourth quarter of 2020 ended December 31. The data show that Facebook’s total revenue for the fourth quarter was $28.072 billion, up 33% from $21.082 billion in the same period last year; operating profit of $12.775 billion, up 44% from $8.858 billion in the same period last year; operating margin of 46%, up from 42% in the same period last year; net income of $11.219 billion, up 53% from $7.349 Diluted earnings per share was $3.88, up 52% from $2.56 per share in the same period last year.
Facebook’s market capitalization exceeds $1 trillion for the first time
From the perspective of operating results, Facebook’s total revenue in the fourth quarter was $28.072 billion, up 33% from $21.082 billion in the same period last year. Among them, advertising revenue of $27.187 billion, up 31% from $20.736 billion in the same period last year; revenue from other businesses was $885 million, up 156% from $346 million in the same period last year. As of December 31, 2020, Facebook held cash, cash equivalents and resold to securities totaling $61.95 billion.
In terms of user data, Facebook’s average daily active users (DAU) reached 1.84 billion in December 2020, up 11% year-over-year; monthly active users (MAU) were 2.8 billion, up 12% from the previous year. Among them, the Facebook application family (Facebook, Instagram, etc.) daily active users (DAP) reached 2.6 billion on average, an increase of 15% over the same period last year. 2020, Facebook monthly active users (MAU) were 2.8 billion, an increase of 12% over the previous year; Facebook application family (Facebook, Instagram, etc.) monthly active users (DAP) reached 2.6 billion, an increase of 15% over the same period last year. Instagram, etc.) monthly active users (MAP) reached an average of 3.3 billion, up 14% from the previous year.
As for the earnings outlook, Facebook expects total revenue growth to remain stable or moderate year-over-year in the first and second quarters of 2021. In response to the earnings report, Mark Zuckerberg, founder, and CEO of Facebook, said, “We had a good last quarter last year as people and businesses continued to use our services during this challenging period. I’m excited about our product roadmap for 2021 as we build a new and meaningful way to create revenue channel opportunities, build community and help people enjoy life.”