The market capitalization of Facebook Inc. surpassed $200 billion on Monday, which puts the U.S.-based company in the ranks of the worlds largest corporations. According to data compiled by Bloomberg, the shares of the company increased by 0.82% and reached $77.89 at yesterdays close in New York, which valued the company at $201.2 billion.
This made Facebook the 22nd-biggest company in the world, right behind Verizon Communications Inc. and ahead of Toyota Motor Corp. In addition, Mondays gain leaves the worlds biggest social network with a value that equals to almost exactly half of Googles capitalization, which amounts to $400.4 billion after closing at $601.63 on Monday.
The market value record comes right after Facebook revealed an increase in its video business, which pushed the company into providing some extra video-content tools that are oriented towards a new stream of advertising revenue.
The worlds largest social network has surprised analysts with its quarterly earnings reports over the last twelve months, beating their initial forecasts due to rapid growth in mobile usage and advertising revenue. Over the second fiscal quarter the company revealed a 61% increase in its sales, which reached $2.91 billion. As Facebook shared, mobile promotions equalled to 62% of ad sales, in comparison to the 59% generated over the prior period.
“This latest rally stems from their last earnings announcement, when they reported higher demand and sales numbers for their mobile ads,” said Jeffrey Sica, who oversees more than $1.5 billion in assets as president of Sica Wealth Management, in an e-mail cited by Bloomberg. “If they can continue to grow their mobile ads, they will have a sustainable demand for their stock.”
According to some analysts, the companys prospects are quite high, because it hasnt yet started to monetize purchases such as Instagram and WhatsApp.
Facebook Inc. rose by 0.82% up to $77.89 per share on Monday, marking a one-year change of +77.22%. According to CNN Money, the 39 analysts offering 12-month price forecasts for Facebook Inc. have a median target of $87.00, with a high estimate of $100.00 and a low estimate of $72.00. The median estimate represents a +11.70% increase from the last price of $77.89.
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