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The post Facebook (NASDAQ:FB) joins US$1 trillion club as share price leaps appeared first on The Motley Fool Australia. –
The Facebook, Inc. Common Stock (NASDAQ: FB) share price closed up 4.2% yesterday (overnight Aussie time).
The social media giant finished the first trading day of the week at US$355.64 (AU$467.95) per share. That was enough to vault Facebook’s market cap to US$1.01 trillion, joining a small handful of listed companies that have cracked the trillion-dollar mark.
At time of writing, the Facebook share price is up another 0.2% in afterhours trading to US$356.21.
Why did shares in Facebook leap higher yesterday?
Facebook’s share price popped 4% higher in only 40 minutes yesterday afternoon (US time) after news broke that a judge had ruled in its favour and dismissed 2 major antitrust lawsuits.
In December 2020 the US Federal Trade Commission (FTC) along with several US state attorneys general filed the suits against Facebook, saying the company was violating antitrust laws. The FTC was looking to force Facebook to divest some of its assets, such as the highly popular Instagram and WhatsApp programs.
In a win for Mark Zuckerberg’s company, and the Facebook share price, the court ruled against the FTC. As Bloomberg reports, District Judge James Boasberg said there was not enough evidence presented to prove Facebook has more than a 60% monopoly share of the total social networking market.
That’s not necessarily the end of the FTC’s legal action against Facebook. The agency can refile its complaint within 30 days if it believes it can prove its antitrust allegations.
Facebook share price snapshot
Facebook shares are up 61% over the past 12 months. And since the 20 March 2020 pandemic-fuelled low, shares are up 138%. And remember, this is a US$1 trillion company we’re talking about.
Apple Inc (NASDAQ: AAPL) became the first listed US company to surpass US$1 trillion almost 3 years ago. It’s since been joined by Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), and Alphabet Inc Class A (NASDAQ: GOOGL), or Google to you and me.
With Facebook’s share price lift yesterday, it now joins this trillion dollar club.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.