Facebook Inc. shares escalated to higher values after the anti-trust victory that pushed the market valuation above $1 trillion. This made the social-media giant Facebook the fastest enterprise to attain the milestone. On June 28, Facebook company shares rose around 4.2% by $355.64, the highest value in two months after the judiciary granted to dismiss two complaints against the company by State attorneys general and US Federal Trade Commission.
The stock has increased 30% in 2021 as the public’s reliance on the app grew in order to stay in touch with everyone, and businesses also used the app during the pandemic. This resulted in steady growth in users and creating immense demand for digital advertisements. After Apple Inc. first reached the $1 trillion mark, Microsoft Corp, Amazon, Google, and Facebook reached the same goal. In 17 years, Facebook reached this milestone. The growth was possible due to the purchase of competitive apps like Instagram in 2012 and WhatsApp in the year 2014. However, Zuckerberg chose to ignore the downsides of the social network, where above 3.45 billion people across the globe contribute content to.
Why Was the Complaint Filed Against the Company?
Mark Zuckerberg testified various times in front of US congress due to many missteps taken by Facebook. Regulators allege that Facebook has lost its control over the data of users and failed to control the harmful or violent information flow. In addition, the 46- state attorney general and US Federal Trade Commission sued Facebook in December 2020 for being anticompetitive, and the growth of company size has led to harming consumers, including low product quality.
James Boasberg, the US District Judge, said on June 28 that US FTC has failed to show that Facebook company has a monopoly in social networking. Within 30 days, the agency can again refile the complaint.
Facebook is Thriving
From an investor’s perspective, the market of Facebook is thriving. Since the 2012 initial public offering, the company faced doubts about whether it would make money with the help of mobile phone users. However, it proved that the advertising business would work there too. It constantly found ways to meet the expectations of earnings and revenue. It also ensured that more and more people sign in to utilize its products.
In April 2021, Facebook said that the revenue in that quarter would remain steady or increase from the first quarter when the sales propelled 48% to $26.2 billion.