When it comes to market capitalization, Facebook is officially bigger than IBM

5 Comments

Credit: Gigaom Illustration adapted from Shutterstock

For the last week I’ve been keeping an eye on Facebook’s (s fb) and IBM’s (s ibm) market caps. On Monday August 4th, the social media giant passed the ancient, massive tech company, and I wasn’t sure if it was a momentary market fluke. After all, Facebook briefly topped IBM following its spectacular earnings call a few weeks ago, but it didn’t sustain the momentum.

This time however, the stock market shift appears a little more solid. This Friday, August 8th, the stock market closed for the week with Facebook still holding a bigger market cap at $190 billion compared to IBM at $186 billion. It’s an impressive shift, given that Facebook is a much smaller company by other metrics. It has 7,185 employees to IBM’s 431,212, $7.87 billion in 2013 revenue (with 55 percent year on year growth) compared to IBM’s $99.7 billion, and ten years of existence to IBM’s 97.

FB Market Cap Chart

FB Market Cap data by YCharts

Two years ago, it would have been unthinkable that Facebook could pass the likes of IBM. But as the social media monster has grown bigger and advertising revenue has moved online, it’s become a substantial player in the U.S. economy. After its second quarter earnings call, its market cap passed the likes of Disney, Coca Cola, and Intel.

Next target? Perhaps Microsoft and its Friday closing market cap of $356B.

 

 

Correction: The first version of this story incorrectly stated that Facebook surpassed IBM’s market cap on Friday August 1st. Closer examination of the charts revealed it happened Monday August 4th.

5 Comments

Sunny

Any bets on which of these two companies will likely be around/relevant/have the same clout 20 years from now?

Samir Shah

This vindicates the strategy of Microsoft. Microsoft is very good in enterprise market but Microsoft does not want to be “another IBM’.

Microsoft will continue to be in consumer space.

All who talk about Surface or Windows Phone getting canned are daydreaming.

Microsoft WILL NOT can Surface or Windows Phone.

markchahn

Thereby showing once again that the stock “market” is a betting pool.

Comments are closed.