Facebook closed for the first time on Monday with a market cap of over $ 1 trillion.
The social media company is the fifth US company to reach the milestone after Apple, Microsoft, Amazon and the Google parent company Alphabet. The company’s shares closed 4.2% at $ 355.64 after a positive court ruling dismissed an antitrust complaint from the US Federal Trade Commission and a coalition of attorneys general.
Facebook generates almost all of its income from personalized advertising shown to users of the social networks Facebook and Instagram. The company also has a burgeoning hardware business, building products like the portal video call device, Oculus virtual reality headsets, and smart glasses that are slated to hit the market sometime in 2021.
In May 2012, Facebook held its IPO and debuted with a market cap of $ 104 billion.
The company suffered a whopping 19% decline in 2018 after posting disappointing revenue and user numbers in the second quarter of this year. That decline came amid a series of scandals this year, including data leaks, fake news, and most importantly the Cambridge Analytica scandal – in which a data firm mistakenly accessed the data of 87 million Facebook users and used it to advertise Donald Trump to turn in the 2016 presidential election.
Despite the scandals, Facebook was able to recover and continued to expand its user base and steadily increase its average revenue per user. The share price has risen more than 90% since July 27, 2018.