Mark Zuckerberg-led Facebook now has now reached a market value of over $1 trillion. Remarkably, it has achieved this milestone faster than any other technology firm, the time being 17 years after the company’s establishment. This milestone was supported by the 4.2% rise in its share price on Monday.
The rise was accompanied alongside a judge’s dismissal of two complaints against Facebook filed by the Federal Trade Commission (FTC) and state attorney general’s alleging monopolistic practices.
Facebook’s share price has recorded a 30% increase this year owing to people’s increased dependency on its offered elite services including WhatsApp and Instagram to stay in touch with their contacts and conduct successful business during the COVID-19 pandemic.
But surprisingly, on Monday, Facebook’s share price went up by 4.2% to $355.64. This was the highest increase in the last two months. This rise helped the firm boom it’s share prices.
Facebook is the youngest company to reach this milestone
Only few of American tech companies have crossed the trillion dollar valuation milestone. Apple achieved the platform three years ago; subsequently it was joined by Alphabet Inc., Amazon, and Microsoft in the big league. Facebook is the youngest company to achieve the milestone valuation just 17 years after the company was co-founded by Mark Zuckerberg.
Anti-competitive complaints filed by FTC, dismissed or passed?
A recent report cleared that Monday’s jump in share price can be attributed to the dismissal of two complaints against Facebook by a judge.
The complaints were filed by the FTC and 46 state attorneys general in December which alleged that Facebook’s size as a company has resulted in consumer harms including reduced product quality, thereby amounting to anti-competitive behaviour.
‘too speculative’ complaints, FTC couldn’t substantiate monopoly allegations
The complaints were cancelled since the FTC failed to proof that Facebook has a monopoly in social networking. The agency’s claim that Facebook controls over 60 % of a roughly defined market was deemed “too speculative and conclusory to go forward.”
The FTC can re-file the complaint within 30 days. Nevertheless, investors’ interest in the social media giant shows no signs of diminishing and the firm still keeps moving forward and achieving milestones.