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- Meta market cap approaches $1 trillion after Mark Zuckerberg’s ‘year of efficiency’
- The last time Meta became a trillion-dollar company was in 2021, but in 2022 it suffered a major stock price crash.
- Meta will implement its first-ever major layoffs at the end of 2022 and has promised a “year of efficiency” in 2023.
Meta is starting 2024 on a strong note after a “year of efficiency.”
Metaplatforms’ stock price will rise 200% in 2023, putting it on track to reach the $1 trillion mark.
Meta’s market cap is currently $966.6 billion, which means it is $33.4 billion away from the precious $1 trillion milestone.
If Meta reaches $1 trillion, it will join fellow Big Tech companies Microsoft, Apple, Alphabet, Amazon, and Nvidia, which are currently worth more than $1 trillion. Microsoft currently ranks first with a market capitalization of $2.93 trillion.
Meta has been here before. The last time the tech giant crossed the $1 trillion mark was in June 2021. The stock hit a record closing price of $1.08 trillion on September 7 of the same year, according to Dow Jones Market Data.
But like many other technology companies, Meta faced severe challenges as demand for its technology products and services declined as coronavirus-related travel restrictions eased.
In February 2022, Meta suffered the largest single-day wipeout in U.S. corporate history after reporting fourth-quarter results that showed Facebook’s daily active user base shrank for the first time in history.
In an effort to cut costs, Meta will lay off 11,000 people in November 2022, the first major layoff in its history, and has pledged to carry out large-scale layoffs in 2023. “Year of Efficiency”.
It looked like the effort was paying off. Meta reported strong earnings for the third quarter of 2023, exceeding analyst expectations.
Meta’s stock price rose nearly 200% in 2023, making it the second-best performing company on the S&P 500 index, behind semiconductor maker Nvidia.
Meta stock closed 2.1% higher at $376.13 per share on Thursday. According to MarketWatch calculations, the company would need to close at $389.13 for its market cap to reach the $1 trillion mark.
Meta’s soaring stock price has increased the wealth of co-founder and CEO Mark Zuckerberg, who owns 13% of the company. According to the Bloomberg Billionaires Index, his net worth was $48 billion at the beginning of 2023, but he is now the sixth richest person in the world with $136 billion.
Meta stock has increased 6.3% since the beginning of the year.
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