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Facebook tops $1 trillion in market cap

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Miguel A. Rodriguez
Miguel A. Rodriguez
29 June 2021
Record day for the social media behemoth

Facebook became the fifth US company to hit a significant milestone - $1 trillion in market capitalization. It joined Apple, Microsoft, Amazon, and Alphabet. The company's shares went up after a favourable legal ruling that dismissed an antitrust complaint brought by the US Federal Trade Commission (FTC) and multiple state attorneys general.

On Monday, a federal court dismissed the antitrust complaint against Facebook, as well as a parallel case, which could have resulted in Facebook divesting Instagram and WhatsApp. The FTC sued Facebook in December 2020 and attorneys general from 48 states, arguing that the California-based company engaged in a systematic strategy to eliminate threats to its monopoly. The lawsuit mentioned the 2012 and 2014 acquisitions of Instagram and WhatsApp, respectively. However, the court ruled that the FTC failed to prove its main contention and the cornerstone of the case.

Regarding the general attorneys' case, the court completely dismissed it, saying that the long delay between the acquisitions and the 2020 case filing was unprecedented on a state level.

Following the court outcome, Facebook stock price closed up 4.2% at $355.64 apiece.

Sources: cnbc.com, theverge.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.