Facebook goes express to mega-cap status - now valued more than AT&T, Coke
Published on Jul 25, 2014 3:40 AM
NEW YORK (Reuters) - In the days after its infamously mishandled initial public offering in May 2012, it looked as if Facebook would struggle to become a must-own for fund managers.
Now the company's US$190 billion market value makes it bigger than such bellwethers as Coca-Cola and AT&T.
It is not a member of the Dow industrials, but if it were, it would be larger than two-thirds of that index's 30 members. Shares in the world's No. 1 social network touched a record high of US$76.74 on Thursday after earnings and revenues easily topped analysts' forecasts, boosting its market value to nearly US$194 billion. That ranks it 15th in the S&P 500, just below the US$196 billion market cap of IBM.
"A 100-year-old company with real assets versus a company admittedly with virtual assets and they are trading at the same market cap - crazy," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.
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