Facebook (NASDAQ:FB) is a publicly listed company on the Nasdaq stock exchange, and forms part of the NASDAQ 100. As at 15th of June 2018, the Facebook Share Price closed at 195.85 USD, with a market cap of approximately 571.32 bn USD.

Facebook Share Price

Products, Services & Brands

Facebook is a company founded in 2004, by 5 co-founders Mark Zuckerberg, Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes. The company launched a social networking platform under the initial brand “TheFacebook”, which was later rebranded to “Facebook”. The companies’ main business model is advertising revenue, whereby global companies advertise on the platform to get more relevant engagement and leads. Facebook has acquired several products and brands in the since their inception 14 years ago. In 2012 they acquired Face.com, an Israeli company, for close to $100 million. More recently they’ve acquired bigger more well known brands such as Oculus VR, Whatsapp and Instagram for a combined total of $22 billion. Oculus VR is the market leader when it comes to virtual reality technology. WhatsApp announced in 2017 that a total of 55 million messages are sent every day using the app. Instagram is an App allowing anyone with a smartphone to visually tell a story. Users share videos and images with their friends daily, close to 95 million a day. Facebook have spent a lot in acquisitions over the years acquiring a total of 69 companies. They label these type of acquisitions as “talent acquisitions”, as they are acquiring talent within a specific field. Often, Facebook shut-down these acquired products soon after acquisition. Instagram, WhatsApp and Oculus VR seem to be the only exceptions to this pattern.

Financial Information

In 2017 Facebook (Facebook) grew their revenues by 47% to 40.653 bn USD, with an EBITDA % of 66.3%.   As at 15th June 2018, the market cap for Facebook (Facebook) is 571.32 bn USD. The market cap is calculated by multiplying Facebook Share Price by the number of shares. For our readers we’ve calculated two multiples for you to be able to compare with other similar companies. We’ve compared the market cap divided by the gross revenue for the previous financial year (Gross Revenue X), and the market cap divided by the EBITDA for the previous financial year (EBITDA X). The results for the two metrics were as follows;
  • Gross Revenue X is 14.05
  • EBITDA X is 21.20
These multiples obviously fluctuate through the financial year as the Facebook Share Price changes, as well as expected revenues from the company.

Changes to Facebook Share Price

Throughout the financial year there are events that impact a company’s share price. We expect that the main changes effecting the Facebook Share Price will be;
  • Mergers & Acquisitions of other companies
  • Quarterly & Yearly Financial Results
  • Entrance into new products, or markets. This could be through mergers & acquisitions
  • Changes in regulation and legislation in key countries
There are also generic events that can impact the Facebook Share Price or any other share price;
  • Global or Local financial & stock market confidence
  • Foreign exchange fluctuations
  • Extreme ‘black swan’ events such as extreme weather
We recommend that when assessing your view on the Facebook Share Price you take into consideration several aspects of the business;
  • The current financial data
  • Any significant events coming in the short or long term
  • Long term goals of the company
  • The industry the company operates within
  • Risks the company has and what they are doing to mitigate them
  • Opportunities the company
  • The company’s capability to perform on and or above established targets and objectives
  • Global or local news that can impact the company share price

Facebook Share Price General Information

The Facebook Share Price forms part of the NASDAQ 100 on the NASDAQ Stock Exchange. The 100 highest market capitalisation companies on the NASDAQ are listed as an index. This is very similar to the FTSE 100 index on the London Stock Exchange. The calculation of the index is weighted calculation on market cap of each company in the index. Therefore, significant changes to one of the larger market cap companies will have a biggest impact on the index than one of the smaller market cap companies. The Facebook Share Price and market cap of the company is a key component of the NASDAQ 100 Index, and as at June 2018 it was ranked 7th on the NASDAQ 100 list.

Other Facebook Share Price News

For more analysis, news and updates regarding the Facebook Share Price or other share prices please make sure to read our below.
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