General
June 28, 2021
4 minutes read

Alert: Facebook Notches $1T Market Cap For First Time

On the markets today, there’s been a major event. It’s that social media giant Facebook Inc has crossed a $1…

On the markets today, there’s been a major event. It’s that social media giant Facebook Inc has crossed a $1 trillion market cap for the first time ever, just after a US judge dismissed an antitrust lawsuit from the Federal Trade Commission (FTC) against the company.

Shortly after the dismissal, Facebook shares rose up nearly 5% to surpass a market cap of $1 trillion for the first time ever. It’s a testament to frothy markets favoring Facebook, whose business has continued to soar despite major regulatory scrutiny the company is grappling with.

For reference, Facebook reported $26.2bn in revenue in the three months ended March 31, 2021. This was up 48% from the same period in 2020. The company stayed put on bringing in wads of cash from advertising on its Facebook and Instagram properties, which make up the vast majority of its sales.

Joining the $1 trillion club, Facebook can congratulate itself for being in an exclusive club. Only a few other companies have crossed that milestone, among them fellow tech giants including Apple, Alphabet, Microsoft, and Amazon. Outside tech, only Saudi Aramco on the Saudi stock markets has crossed that milestone.

It’s obvious that Facebook isn’t slowing down business-wise even as it grapples with regulatory scrutiny and pushback to its business. On the FTC’s end, the company was accused of violating antitrust laws by acquiring would-be competitors, most notably Instagram and WhatsApp.

However, a US District Court on Monday dismissed the FTC’s complaint against Facebook and also a similar case filed by a group of US state attorneys general, arguing that the suing parties failed to provide enough facts to back up their antitrust claims.