The tech sector has been one of the most volatile in recent months, but the sector has been gaining recently as innovations, deals, and new products are announced.
By now, only four big techs — $Apple Inc(AAPL.US)$, $Amazon.Com Inc(AMZN.US)$, $Microsoft Corp(MSFT.US)$, and $Alphabet Inc-CL C(GOOG.US)$ — have a market cap of more than $1 trillion. Apple broke $2 trillion in market cap last year.
Facebook has a market cap of $954.9 billion. To top $1 trillion, its shares would need to reach $351. The stock almost hit a 52 week high yesterday, closing at $336.77. It is the second-best FAAMG performer this year, just behind Alphabet, rising about 23%.
Facebook earnings highlight
Facebook reported first-quarter 2021 earnings of $3.30 per share, up 93% year over year, and revenue of $26.17 billion, up 48% year over year.
Monthly active users (MAUs) were 2.853 billion, up 9.6% year over year. Daily active users (DAUs) were 1.878 billion, which increased 8.3% year over year and represented 66% of MAUs.
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Will Facebook build its trillion-dollar empire?
Facebook has moved cautiously -- some might say too cautiously -- when it comes to monetizing Messenger and WhatsApp, which claim, respectively, more than 1.3 billion and 2 billion monthly active users.
But the company is gradually making good on Mark Zuckerberg's vision of having its messaging platforms act as customer service and engagement channels for businesses marketing and selling on Facebook's core app and Instagram.
In addition, WhatsApp's product catalog feature creates an e-commerce opening for the platform, and (though Facebook is opting not to do so for now) its stories service, known as Status, could eventually be monetized via ads.
-The Street
I like the call quite a bit [but] I think actually you can trade further upside here in Facebook. I mean, it's not an overly high MOMO stock quite honestly.
The company I think is hindered with this regulatory concern, but I think traders can really catch some further upside. I think this is on its way to the trillion-dollar market cap club.
- Quint Tatro, Joule Financial President
Facebook launched carts on WhatsApp last year, and people have used them to send orders more than 5 million times.
It's also building out broader infrastructure to support commerce, everything from payments to customer service and support. WhatsApp payments are now live in India and will soon launch in Brazil.
Facebook is slowly building a trillion-dollar empire, and once it is complete, it might become the biggest company in the world.
- The Motley Fool
Source: CNBC, The Motley Fool, The Street
Editor: Zoe
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