Meta Approaching $1 Trillion Market Cap After ‘Year of Efficiency’
Meta on the Rise
Meta Platforms, formerly known as Facebook, is making strides towards a $1 trillion market cap following a successful ‘Year of Efficiency.’ With its stock price surging by 200% in 2023, Meta is currently valued at $966.6 billion, only $33.4 billion away from the coveted $1 trillion milestone. If it achieves this feat, Meta will join the exclusive club of tech giants, including Microsoft, Apple, Alphabet, Amazon, and Nvidia, all of which have surpassed $1 trillion in market value. At present, Microsoft leads the pack, with a market cap of $2.93 trillion.
A Familiar Position
This is not the first time that Meta has come close to the trillion-dollar mark. In fact, the company reached this milestone back in June 2021 when it achieved an all-time high closing valuation of $1.08 trillion on September 7th of the same year. However, Meta’s fortunes took a downturn in 2022 when it experienced significant challenges due to a drop in demand for tech products and services following the easing of Covid-related restrictions.
A Year of Recovery
In an effort to cut costs and streamline operations, Meta underwent its first-ever major layoffs, resulting in 11,000 job cuts in November 2022. The company vowed to make 2023 a “year of efficiency.” This strategic move paid off, as Meta reported impressive earnings in the third quarter of 2023, surpassing analysts’ estimates. The strong performance propelled the stock to gain nearly 200%, making it the second-best performing company on the S&P 500, just behind chipmaker Nvidia.
The Road to Trillion-Dollar Status
Meta’s shares closed at $376.13 apiece on Thursday, marking a 2.1% increase. In order to reach the trillion-dollar mark, the stock would need to close at $389.13. The surge in Meta’s share price has significantly boosted the net worth of CEO Mark Zuckerberg, who owns a 13% stake in the company. With a net worth of $136 billion, Zuckerberg is now the sixth-richest person globally, a remarkable increase from his $48 billion net worth at the start of 2023, according to the Bloomberg Billionaires Index.
Continued Growth
So far in 2024, Meta’s shares have risen by 6.3%. With positive momentum and the promise of reaching the trillion-dollar milestone, Meta is well-positioned for continued growth.
Source: Meta is approaching a $1 trillion market cap after Mark Zuckerberg’s ‘Year of Efficiency’
