Facebook Inc., operator of the social media network Facebook, has jumped ahead of General Electric and now sits as the sixth largest company in Standard & Poor's 500 Index.
The social network operator is currently $308 billion in market value, which tops General Electric's $297 billion. It also managed to edge out Amazon that holds $307 billion market value, as well as distance itself from Wells Fargo and Johnson & Johnson at $280 billion and $282 billion, respectively.
Bear in mind that General Electric was not performing badly. Facebook is just performing really well. RBC Capital markets analyst Mark Mahaney compares Facebook's market growth to that of Google's.
"But not Google today; Google back in 2007 and 2008, when it too was doing this kind of revenue growth," Mahaney says in an interview with Bloomberg.
According to Bloomberg, Facebook. jumped by 5 percent in market value at 1:14 p.m. on Nov. 6. The massive leap happened after the corporation posted its quarterly sales and profit, which has beaten estimates by 3 to 5 percent.
Facebook's overage in expected earnings was brought about by its increased endeavors in mobile advertising. Note that aside from increasing the number of video ads on the mobile platform of the social network portal in the past quarter, Facebook's mobile layout has been revamped over a month ago to create a more enticing user interface. Facebook is currently seeing a billion visitors per day and more than 1.5 billion active monthly users. The figures make it the world's biggest social network.
Moreover, it also released Slides, which gives advertisers the ability to reach markets with limited internet speeds. Aside from its main platform, Facebook, has also extended its marketing arm to Instagram's mobile photo-sharing app last quarter.
With Facebook's jump in market value, Mark Zuckerberg, the corporate CEO, now has a net worth of $47.8 billion. Roughly $2.4 billion dollars were added in the first 15 minutes of trading last Thursday. Zuckerberg ranks as the eighth wealthiest individual based on Bloomberg's Billionaires Index.
