The social network giant, Facebook, once again proves its potentials as its stock market value continues to soar, beating the world's leader in retail business, Wal-Mart. Standard & Poor's 500 index update shows that the switch in value ranking happened on Monday without any significant market signals to cause Facebook's leap. This stock market buzz triggers more investors to buy the stock causing the value gap to spread the next day.
Facebook Inc. was able to achieve $3.14 stock value increase or a 3.7% growth by the end of Tuesday trading. It closed at price of $87.88, resulting to the company's value upsurge at $238 billion. Meanwhile, Wal-Mart Stores Inc. suffers a 22 cent fall causing its market value to drop at $234 billion.
Facebook's shares growth was seen to start last year with a whopping increase of around 34%. If Facebook's market value prolongs its momentum, it is more likely to join all other American companies listed on highest-valued businesses including other tech stocks like Google, Apple, and Microsoft.
During the first quarter this year, Facebook Inc. reported a $3.54 billion profit, slightly greater than Wal-Mart Stores Inc.'s earnings amounting to $3.34 billion. This relatively accounts to approximately 42% revenue increase for Facebook and 7% decline for Wal-Mart in the same period last year.
With this market event, some stock experts agree that public investors are now leaning more on the company's potential rather than its size and age of existence in the field of business.
Apparently, Wal-Mart's financial revenue is affected by the continuous strengthening of dollar, higher labor rates and bigger online marketing operational cost. On the other hand, Facebook remains viable among its competitors in the social media arena as it persists to consider service innovations and services that deliver growth and better income for the company.
Will Facebook maintain its growth potential? Will you be investing money on this stock? Let us know your thoughts.
