Facebook crosses the trillion dollar mark for the first time

The social media company Facebook has become the fifth American company with a market value to exceed the trillion dollar mark, joining its peers, Apple, Microsoft, Amazon, and the parent company of Google (Alphabet).

The company’s shares closed up 4.2% at $355.64 after a legal ruling was issued to reject a monopoly lawsuit filed by the US Federal Trade Commission and a coalition of US attorneys general, CNBC reported.

The court considered that the lawsuits against Facebook did not provide sufficient evidence to establish a monopoly on the company.

Facebook derives nearly all of its revenue from personalized advertising that appears to users of the social networks Facebook and Instagram.

The company also has a thriving hardware business, offering products such as the Portal video calling device, Oculus virtual reality headsets and smart glasses, which are due to launch sometime this year.

Facebook had its initial public offering in May 2012, when it debuted with a market capitalization of $104 billion.

The company suffered a massive 19% drop in 2018, after posting disappointing revenue and weak user numbers in the second quarter of that year. The drop came amid a number of scandals at the time, including data leaks and fake news, most notably the Cambridge Analytica scandal. The data company illegally accessed and used the data of 87 million Facebook users for activities related to the 2016 campaign for the election of former US President Donald Trump.

Despite the scandals, Facebook has been able to recover, continuing to expand its user base and steadily increasing its average revenue per user, with the stock price now up more than 90% since July 27, 2018.

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