Facebook Has Reached A Record Capitalization Of 200 Billion $ In Less...

Facebook Has Reached A Record Capitalization Of 200 Billion $ In Less Time Than Google

0 1193

Facebook has reached for the first time a market capitalization exceeding $ 200 billion at the end of the trading session on Monday. This result has been obtained in a shorter period of time than Google.

Facebook has surpassed veteran tech companies such as IMB, Intel and Oracle. At the same time, the social network as surpassed Coca-Cola, Toyota and Bank of America as a result of the increased value of shares with 0.8 percent on Monday. In less than two and a half years from the listing on the stock exchange in February 2012, the market capitalization of Facebook reached 200,9 billion dollars, which is half of Google’s value.

By comparison, Google has reached a capitalization level of $ 200 billion in October 2007, 3 years after the initial public offering in 2004. The problem was that it fell quickly along with the whole market in 2008. In December 2009, Google reached again a $ 200 billion level and since 2012 the company’s value has increased by over 75%.

A capitalization Boom

 The two companies compete on the advertising market. Also, they compete for online supremacy through applications ans services. The record level of capitalization was recorded by Facebook after the company announced that the video services became more and more popular. This way Facebook created a new payed advertising method which increased company’s incomes.

The company owned by Mark Zuckerberg has spent billions of dollars on buying start-ups which threatened Facebook’s position in social media: Instagram and WhatsApp Messenger.

The company’s strategy of dividing the mobile Facebook application into many applications has attracted more investors although it has upset several users who have rejected Facebook’s decision to separate the chat room from the main application.