Facebook is worth more than Amazon. Following yesterday’s earnings report, Facebook shares hit an all-time high in after-hours trading at $75. Price has been very stable this morning as well, confirming yesterday’s pop. Shares opened at $75.96 a share, then set a new record at $76.74. Now, shares are trading at $75.13.
In other words, Facebook’s market capitalization is now around $190 billion, which is above Amazon’s market capitalization of $165 billion.
With $2.91 billion in revenue and earnings of $0.42 per share, the company beat the analysts’ expectations. When you see Facebook’s earnings chart, it seems like there is no end in sight. Facebook is a great example of a tech company that has performed very well since going public.
It could have bigger consequences on the stock market. Investors could become bullish on other tech stocks due to Facebook’s good performance.
Facebook is a much different company than it was when it went public in May 2012. At the time, most of its users were browsing the social network on their laptops, and the company’s ad offering wasn’t as effective as it could be. Now, most users go to Facebook on their phones, and the mobile ads are performing very well.
But if you look back even further, nobody would have thought five years ago that Facebook would be worth more than Amazon, around half of Google and Microsoft. One last number, Facebook is now worth more than eight times Twitter.
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Image credit: Bryce Durbin