The shares of Facebook are trading higher today and reached the $100 mark ahead of the release of its quarterly earnings on November 4.
The stock price of the social network giant increased more than 2% to $101.89 per share at the time of this writing, around 1:09 in the afternoon in New York. Facebook gained more than 30% in stock value year-to-date.
Facebook could make significant money
Bloomberg noted that Facebook is the fastest company to reach a $250 billion market capitalization. Currently, the social network giant has approximately $283.22 billion market capitalization.
Tim Ghriskey, managing director and chief investment officer at Solaris Asset Management, commented, “The big seminal event for Facebook was showing they could make significant money and turn themselves into a well-run company.” He added, “They’ve seen strong growth in advertising spending and viewership.”
Facebook’ stock crossed the $100 mark after its fellow technology giants including Amazon.com, Microsoft, and Google, now operating as a subsidiary of Alphabet, reported outstanding quarterly results.
The three tech giants added nearly $100 billion in combined market value after reporting earnings that exceeded the expectations of Wall Street analysts.
Facebook joined 109 other companies in the three-digit club of the benchmark index amid speculations that the social network giant will continue to achieve sales growth in mobile advertising.
Facebook established itself as a force
Facebook is one of the five technology giants including Apple, Amazon.com, Google, and Microsoft that together represent almost 10% of the S&P 500 and more than 30% of the NASDAQ 100.
Facebook is currently the seventh largest company worldwide. The social network giant surpassed old economy stalwarts such as Johnson & Johnson and JP Morgan Chase & Co.
Ghrisky said, “Facebook has really established itself as a force. Reaching this level is a testament to the job management has done and the dominant product it is.”
On the other hand, Aaron Kessler, an analyst at Raymond James believed that Facebook would experience a significant upside based on the consensus of its upcoming financial results for the third quarter.
He noted the results of the survey conducted by Nanigans, an advertising automation software company, showing that Facebook’s sequential growth would be 50% higher than the consensus estimate of Wall Street analysts.