Mark Zuckerberg, CEO of Facebook
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Facebook closed above $ 1 trillion in market capitalization for the first time on Monday.
The social media company is the fifth American company to reach the milestone, joining Apple, Microsoft, Amazon and Google’s parent company Alphabet. The company’s shares closed up 4.2% to $ 355.64 after a favorable legal ruling that dismissed an antitrust lawsuit filed by the U.S. Federal Trade Commission and a coalition of state attorneys general.
Facebook gets almost all of its revenue from personalized ads that are shown to users of the social networks Facebook and Instagram. The company also has a burgeoning hardware business in which it is building products such as the Portal video calling device, Oculus virtual reality headsets, and smart glasses, which will launch sometime in 2021.
Facebook held its initial public offering in May 2012, debuting with a market capitalization of $ 104 billion.
The company suffered a colossal 19% drop in 2018 after posting disappointing revenue and user figures for the second quarter of that year. That drop came amid a series of scandals that year, including data leaks, fake news and, most notably, the Cambridge Analytica scandal, in which a data company improperly accessed the data of 87 million people. Facebook users and used them to target ads for Donald Trump. in the 2016 presidential election.
Despite the scandals, Facebook was able to bounce back and has continued to grow its user base and steadily increase its average revenue per user. The share price has risen more than 90% since July 27, 2018.