How Much Is Facebook Worth?
Facebook (Nasdaq: FB) is the world’s largest, and arguably most influential, social media platform, with more than 1.93 billion monthly active users as of September 2021. Whether you use Facebook to stay in touch with friends or to build a brand, it’s hard to deny its ubiquity and reach.
Facebook is currently the subject of investigations spurred by a whistleblower who accused the company of prioritizing profit over user safety. A trove of documents leaked by the whistleblower to The Wall Street Journal revealed research reports and employee discussions suggesting the company knew it was promoting harmful content on its social media platforms, including Facebook and Instagram, the Journal reported. Although the company announced in its fourth-quarter earnings report that it’s the subject of government investigations resulting from the leak, CEO Mark Zuckerberg, who vehemently denies the accusations, is busy transitioning Facebook into it’s new identity, under its new name: Meta. Meta, according to the website, aims to combine the company’s apps and technology under one brand with a focus on bringing the metaverse to life.
Facebook: Company Overview
Another looming issue for Facebook is its privacy battle with Apple, coupled with the societal trend towards more consumer choice regarding third-party information dissemination. New changes in Apple’s operating system will make it harder for Facebook to personalize its advertising, resulting in a drag on the company’s revenues and earnings. However, Facebook shares were up on Oct. 25 after the company announced third-quarter earnings that beat expectations. With the earnings report came the announcement that beginning next quarter, Meta will report on two operating segments — Family of Apps and Reality Labs, which includes augmented and virtual reality hardware, software and content — under the Meta brand. Meta rolls out its new stock ticker, MVRS, on Dec. 1.
Facebook: Company Snapshot
|Headquarters||Menlo Park, California|
|Founders||Mark Zuckerberg, Eduardo Saverin, Dustin Moskovitz, and Chris Hughes|
How Much Is Facebook Worth Now?
Facebook’s initial public offering got off to a rocky start, as the stock plummeted 50% in the first few months and took a full year to get back to its IPO price of $38. After improving its business model through better user experience, however, the company has since been on the rise. Share prices in 2021 have ranged from a low of $244.61 to a high of $384.33. As of last closing, shares were trading at $329.98 — up 20.80% since the beginning of the year.
Facebook beat earnings expectations for 2021 Q3 but missed $29.57 billion revenue estimates with revenue of $29.01 billion. Daily active users were right on target at 1.93 billion. However, Facebook had 2.91 monthly active users, falling slightly short of the 2.93 billion analysts had anticipated, CNBC reported. The company reported 3.58 billion total users for all of its apps, up slightly from last quarter.
In it’s fourth-quarter guidance, Facebook warned of a potential slow down in earnings due continued tensions with Apple over new privacy implementations that allow iOS users to have more control over what apps can track them. Facebook’s Q3 ad revenue was up 35% from a year ago despite the iOS challenges. But the shift in focus toward augmented and virtual reality indicates the company is looking beyond ad-based revenue for the future.
Based on current share prices, Facebook’s market cap is $911.054 billion, down from over $1 trillion last quarter. The company joins a small club of tech companies — Apple, Microsoft, Amazon and Alphabet — to have achieved a trillion-dollar market cap.
What Is Market Capitalization?
Market cap is often used by investors to quickly value a company. However, it has its drawbacks since it does not look at a company’s financials, and the value can fluctuate throughout the day as share price changes. Market capitalization can be calculated by multiplying the share price by the number of outstanding shares. Facebook has 2.37 billion shares outstanding.
Facebook Net Worth Now
Different from market capitalization, net worth is more concrete and not affected by fluctuating stock prices. To find a company’s net worth, look at its financials including the profit and loss as well as balance sheet statements, which are publicly available through the company website or investment news sites. Shareholders’ equity, one of the last lines on a balance sheet, reveals a company’s net worth after assets and liabilities are taken into account. Facebook net worth as of 2021 Q3 is $128.290 billion.
|Facebook Net Worth|
|Facebook’s Share Price, 52-Week Range||$244.61-$384.33|
|2021 Revenue (9 mos. ended Sept. 30)||$84.258B|
|2021 Profit (9 mos. ended Sept. 30)||$29.085B|
Eduardo Saverin, Dustin Moskovitz, Chris Hughes 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 split and subsequent falling out of Saverin and Zuckerberg.
Zuckerberg continues as the CEO, with a net worth of $117.2 billion. Saverin renounced his U.S. citizenship and moved to Singapore, where he heads a venture capital firm. Moskovitz went on to start Asana (ASAN), the work organization platform with a market cap of $23.85 billion. Chris Hughes stays out of the spotlight, with little information available about his current projects.
Good To Know
The company has long been controversial, particularly due to its laissez-faire attitude towards what people and organizations post on the site. This reached a boiling point in 2020, as Facebook finally took steps towards removing hate speech and false information from its site.
The prevalence of “fake news” and misinformation regarding the coronavirus forced the company to make changes regarding its policies and algorithms, and in late 2020, the company took the ultimate step of suspending then-President Donald Trump from its site in the wake of the attack on the U.S. Capitol. In June 2021, Facebook appointed its first VP of Civil Rights to oversee company policy on such matters.
Facebook’s Top 10 Shareholders
Facebook’s founders are among its biggest shareholders, with financial institutions following. The top 10 are:
- Vanguard Group, Inc., 7.71%
- Blackrock Inc., 6.57%
- FMR (Fidelity), 5.37%
- T.Rowe Price, 4.29%
- State Street Corporation, 3.90%
- Capital International Investors, 2.06%
- Capital World Investors, 1.95%
- Capital Research Global Investors, 1.66%
- Geode Capital Management, LLC, 1.64%
- Norges Bank Investment Management, 1.24%
Is Facebook Worth the Money?
As mentioned in the Q3 earnings call, Facebook’s financials are solid, but the company warns it may have some upcoming earnings challenges due to Apple’s new iOS 14.5 privacy settings and the company’s investment in Meta’s Reality Lab. However, some analysts believe the stock is undervalued. Forty one out of 44 analysts reported by Yahoo! Finance rate Facebook a buy or strong buy. Average target estimates place the stock price at $402.76 over the next year.
Based on the information from analysts, Facebook net worth and current earnings, the company looks like it’s worth the money at its current price. However, as with all investments, doing your own due diligence by researching a company is essential.
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Last updated: Nov. 2, 2021
Mark Zuckerberg’s net worth is accurate as of Nov. 2, 2021, according to Forbes’ The World’s Billionaires 2021 list’s real-time data.
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- CNBC. 2021. "Facebook (FB) earnings Q2 2021."
- CNET. 2021. "Facebook vs. Apple: Here’s What You Need To Know About Their Privacy Feud. "
- PRNewswire. 2021. "Facebook Reports Second Quarter 2021 Results."
- MarketBeat. "FB Price Target, Analyst Ratings and Predictions."
- Yahoo Finance. "Facebook, Inc. (FB) Stock Price, News, Quote."
- Morningstar. 2021. "Facebook Inc Class A FB - Morningstar."