- Facebook is the world’s largest social media platform.
- Led by CEO Mark Zuckerberg, the company went public in 2012.
- Facebook shares have continued to decline in 2018.
Facebook (Nasdaq: FB) is the world’s largest, and arguably most influential, social media platform, with more than 2.2 billion monthly active users as of March 18, 2018, including more than 210 million in the U.S. alone. Whether you use Facebook to stay in touch with friends or to build a brand, it’s hard to deny its ubiquity and reach. The company went public in May 2012, and in 2018, it was continuing to attract investors despite privacy concerns.
However, on July 25, 2018, shares of the social media company dropped 20 percent, causing Mark Zuckerberg to lose $16.8 billion, according to Bloomberg. On July 30, Facebook stock suffered a third decline as MarketWatch reported that shares were down 3.2 percent in morning trade, for a 22 percent fall from its record close just five days earlier. In early September, FB stock took another hit as Facebook COO Sheryl Sandberg was questioned about the company’s role in the 2016 U.S. presidential elections, and possible Russian interference in the democratic process through the social media platform. Shares of Facebook (Nasdaq: FB) fell 1.43 percent by mid-day, Markets Insider reported.
Will the company be able to bounce back from its biggest failure?
|What Facebook Is Worth|
|Facebook’s Share Price, 52-Week Range||$144.56-$195.32|
|Facebook’s Market Cap, 52-Week Range||$346.4B-$468B|
|GOBankingRates’ Evaluation of|
Facebook’s Net Worth
|All information on 52-week range accurate as of June 4, 2018.|
|Headquarters||Menlo Park, Calif.|
|CEO Mark Zuckerberg’s Net Worth||$72.2B*|
Facebook’s Market Cap Range: $346.4B-$468B
One of the most reliable gauges for what a company is really worth is market capitalization, or market cap for short. The market cap is the value of all of the company’s stock combined, giving you a sense of what value investors are placing on the company based on the price it is trading at.
Facebook’s market cap has ranged between a little under $350 billion and over $465 billion from May 2017 to early June 2018. Its stock has trended upward pretty much since mid-2013, save for a sharp drop in March 2018 that corrected itself shortly thereafter.
Facebook Net Worth: $138.3B
Although market cap gives you a sense of what the market values a company at, it’s based entirely on market sentiment — essentially reflecting the ever-changing opinions of investors — and it can change hourly. The GOBankingRates Evaluation, however, calculates a company’s net worth based on measurable figures like assets and revenue. It’s a more conservative valuation taking into account full-year profits and revenue from the last three years and the company’s assets and debts.
Based on Facebook’s revenue and profits from the last three years, Facebook is worth just under $140 billion.
Facebook’s initial public offering got off to a rocky start as shares plummeted 11 percent in July 2012. After improving its business model through better user experience, however, the company has since been on the rise, now approaching $550 billion in market cap.
Despite being a mainstay in many lives, Facebook entered dark waters in March 2018 with the publicized revelation that it had failed to protect millions of users’ privacy, resulting in a loss of at least $80 billion in market cap.
Facebook’s History and Investors
Eduardo Saverin and Mark Zuckerberg co-founded Facebook in 2004 while they were students at Harvard. The 2010 movie “The Social Network” dramatizes the company’s origin story, focusing on the founders’ split and subsequent falling out.
More on Facebook’s C-Suite: The Net Worth of Facebook COO and Lean In’s Sheryl Sandberg
As of May 2018, Facebook’s biggest shareholders include its founders, as well as big-name financial companies such as The Vanguard Group; BlackRock Inc.; and FMR, LLC.
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Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.
* Mark Zuckerberg’s net worth accurate as of June 8, 2018, according to Forbes’ The World Billionaires 2018 list’s real-time data.