Facebook Inc (NASDAQ:FB) and Tesla Motors Inc (NASDAQ:TSLA), two revolutionary companies, have achieved a new market capitalization milestone on Monday, with Facebook witnessing a market value of more than $100 billion for the first time, and Tesla motors crossing the $20 billion mark before coming down only slightly at the close.
Facebook trading close to the IPO day price
On Monday, Facebook Inc (NASDAQ:FB) shares gained 1.9 percent before closing at $41.31, and touching even $41.94 in intraday trades which is an all-time high for the social networking site since the share price of $45 in its first moment of its public trading. Facebook’s total value of shares comes in at $100.6 billion.
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Menlo park based Facebook Inc (NASDAQ:FB) has seen a 53 percent gain in share price since it posted the latest quarterly earnings, which guided the investors on how the company is growing its revenue from mobile usage. The total user base for the company is more than one billion people.
After the close on Monday, Facebook got an entry to the elite group of Silicon Valley tech companies with a market cap of more than $100 billion. The companies that had more than $100 billion of market cap on Monday were Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG), Oracle Corporation (NYSE:ORCL), and Cisco Systems, Inc. (NASDAQ:CSCO)
Tesla’s unmatched success
Electronic vehicle maker Tesla Motors Inc (NASDAQ:TSLA), on the other hand, hit an intraday high of $173, giving it a market capitalization of around $20 billion for the first time, however, a decline towards the close to $164.22, lowered the market capitalization to $19.94 billion.
Tesla’s journey to the milestone has been even more mesmerizing, with shares skyrocketing around 385 percent through Monday. Tesla Motors Inc (NASDAQ:TSLA) posted its first ever profitable quarter this year and a sturdy second quarter.
On Monday, Tesla’s stock rose after a report from California New Car Dealers Association that claimed Model S of Tesla sold more than many established luxury car makers, in its home state, in June. Tesla covers 12 percent market share of the “Luxury and Sports” category, which is behind only Mercedes and Bayerische Motoren Werke AG (FRA:BMW) (ETR:BMW). The electric sedan received Consumer Reports‘ highest rating and the federal government’s safety tests also assigned it high marks.
“The market is gaining confidence that Facebook Inc (NASDAQ:FB) is going to be a viable profit-generating machine in the future,” Oracle Investment Research analyst Laurence Balter told Bloomberg. He added that users are clinging to their Facebook pages more than ever.
“Tesla’s the Apple of automotive — it’s managed to cross the automotive and technology fields to become this hot commodity,” Baum & Associates auto analyst Alan Baum told Bloomberg.