Meta Platforms Inc., the parent company of Facebook, is on the verge of achieving a $1 trillion valuation for the first time in over two years. With just a $42 billion gap to fill, the company has witnessed a remarkable resurgence under the leadership of Chief Executive Mark Zuckerberg.
On September 7, 2021, Meta reached its peak closing valuation of $1.08 trillion. However, it didn’t hold on to this milestone for long, falling out of trillion-dollar territory just two weeks later. The journey since then has been filled with ups and downs for investors.
As of November 3, 2022, Meta’s market capitalization hit its lowest point in five years, standing at $235.76 billion. This decline in value caused Meta to slide down the ranks of the largest U.S. companies. This downward trend could be attributed to Zuckerberg’s miscalculation of Wall Street’s tolerance for the extensive spending habits of Big Tech.
Initially, Meta had announced its intent to invest heavily in the metaverse, despite facing stiff competition and macroeconomic pressures impacting its revenue stream. However, management soon realized the need to change course by implementing job cuts and initiating cost-saving measures—a move that triggered a broader movement in Silicon Valley to rein in excessive perks and expenses that had ballooned during the pandemic.
Meta’s impressive turnaround now positions it tantalizingly close to regaining its trillion-dollar market cap. The journey thus far has been a testament to the company’s adaptability and resilience amidst formidable challenges.
Meta Crosses Trillion-Dollar Mark, Joining Exclusive Club
Five U.S. companies have reached the highly coveted trillion-dollar mark, with Meta recently joining the ranks. Microsoft Corp., Apple Inc., Alphabet Inc., and Amazon.com Inc., all familiar names, have been part of this exclusive club for some time. What sets Meta apart is its rapid ascent, especially considering its previous valuation.
Meta’s impressive growth has propelled its market capitalization to over $1 trillion, marking a remarkable increase of approximately $732 billion since its valuation low in 2022. To put this into perspective, Meta’s market value now surpasses that of Tesla Inc., Eli Lilly & Co., Visa Inc., and Broadcom Inc. combined.
Currently, shares of Meta trade at $374.92, just 1.9% below their all-time closing high achieved on September 7, 2021. However, to solidify its position as a trillion-dollar company, Meta’s stock needs to close at $389.13.
This remarkable achievement highlights Meta’s resilience and growth, solidifying its status among the elite companies that continue to shape and dominate the global market landscape.