Most people who live in the United States have more than likely heard of Facebook. It is one of the world’s leading social networking services, and on top of managing the social media platform, they also own Instagram, WhatsApp and Oculus Virtual Reality.
Mark Zuckerberg is the well-known CEO and founder of Facebook, and at one point a few weeks ago, was the fourth richest person in the world, before Facebook’s stock took a downturn in the recent market slip.
Just recently, Kanye West asked Mark Zuckerberg to invest a billion dollars into his ideas and creative process, so we’ll see how that plays out. But even through all the successes of Facebook, even more impressive might be the success of the company’s stock since their initial public offering on May 12, 2012.
When they had their IPO in 2012, the company’s stock was priced at $38 a share, which equated to a market cap of $104 billion, which at the time was the largest valuation at that time.
For instance, if I had a company that issued 1,000 shares of stock and they were valued at $10 a share, my market cap would be $10,000. However, just 68 days later, the stock hit a low of $20.01, due partially to the stock coming down from its high after the IPO, andother various reasons.
The stock now sits at $101.19 a share with a market cap of $287.9 billion. For those of you who do not know what a market capitalization is, it is simply the price of the stock multiplied by the number of shares outstanding that a company has to offer.
Since their IPO, they have grown over 216 percent in that span, and for comparison’s sake, if the market as a whole was doing really well, it would be up around 40 to 45 percent in that same time period.
The company has a bright future ahead of them, with all of their investments, and time will tell if they continue to beat the market triumphantly over time.