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Facebook (FB) hits $1 trillion market cap for first time in company history

Immediately follow the dismissal of an antitrade complaint by the FTC, Facebook shares rose 5%, putting its market cap at a record high.

TJ Denzer

June 28, 2021 1:25 PM

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For as questionable as Facebook’s business practices have been, there is still no doubt that the company continues to keep its value due in no small amount to the traffic it controls and the variety of ways in which it delivers content through ownership of further popular platforms like WhatsApp and Instagram. The amount of power Facebook wields in flow of information (and misinformation) and the marketplace is a matter that has various forces concerned, including the Federal Trade Commission. However, following the dismissal of an antitrust complaint from the FTC by a federal judge, Facebook has only continued to flourish, gaining a record high market cap of $1 trillion USD following the decision.

This record cap was reported on June 28, 2021, shortly following the dismissal of the complaint, as reported on CNBC. Going into Monday, Facebook was facing an antitrust complaint from the FTC for an alleged monopoly over its marketplace. The complaint, if successful, would have at least forced Facebook to divest from groups such as Instagram and WhatsApp. It was, however, dismissed on grounds of a lack of sufficient facts supporting the FTC’s complaint. Shortly after, Facebook shared jumped as high as 5 percent.

This jump in share price for Facebook saw the company’s shares peak at around $358 per share, up from a low of around $342 to start the day and a $341 low. The share price has dipped from its peak as of this writing but still remains better than it started out this week. Even so, Facebook is not out of the FTC’s litigious crosshairs. The official court decision suggested there are firmer grounds for a complaint that would carry weight and rejected Facebook’s claim that the FTC didn’t have the authority to pursue a further complaint on those grounds.

Even so, Facebook shares sit at a much higher point as we continue on to the home stretch of market close today, something that large shareholders like Mark Zuckerberg, who has sold his shares heavily and regularly since November 2020. It will remain to be seen how litigation plays out between Facebook and the FTC, but for now, Facebook seemingly enjoyed a victory today and its shareholders are seemingly the ones who won out more than anyone. Stay tuned for the latest updates and information as it becomes available on Facebook and more, right here at Shacknews.

TJ Denzer

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.