How HUGE is Facebook’s $104 Billion Valuation?
Facebook’s (NASDAQ:FB) request for a successful initial public offering has now been confirmed. After Thursday’s closing bell, the social-media juggernaut’s IPO priced at $38 per share. The price came in at the top end of the $34-$38 range it set earlier this week after raising it from $28-$35.
The Mark Zuckerberg led company is now the largest technology IPO in history. Facebook (NASDAQ:FB) raised about $16 billion from the offering by selling 421.2 million shares. “My feeling is they could have gone higher, but they wanted to leave some room for upside tomorrow,” said Arvind Bhatia, an analyst with Sterne, Agee & Leach Inc., according to Bloomberg. “The demand was obviously quite strong so I think it’s the right move.”
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With the IPO pricing at the high end of the range, it places Facebook’s (NASDAQ:FB) valuation at $104 billion. “It seems like a very full valuation but I’m sure there was an almost insatiable amount of retail interest in Facebook and that’s how the bankers looked at it,” explained Dan Veru, chief investment officer at Palisade Capital Management, according to Bloomberg. “Everyone wants a piece of Facebook.”
Even though shares do not start trading on the Nasdaq until Friday morning, Facebook already registers as one of the largest companies in the world. According to the WSJ and data from FactSet Research, the list below shows where Facebook would fall on the 25 biggest S&P 500 companies by market capitalization.
Apple Inc. (NASDAQ:AAPL): $498.7 B
Exxon Mobil Corp. (NYSE:XOM): $385.3 B
Microsoft Corp. (NASDAQ:MSFT): $251.8 B
IBM Corp. (NYSE:IBM): $230.0 B
Berkshire Hathaway (NYSE:BRKA): $217.0 B
Wal-Mart Stores (NYSE:WMT): $211.1 B
Google Inc. (NASDAQ:GOOG): $205.3 B
General Electric Co. (NYSE:GE): $201.0 B
Chevron Corp. (NYSE:CVX): $198.9 B
AT&T Inc. (NYSE:T): $195.6 B
Procter & Gamble Co. (NYSE:PG): $175.8 B
Johnson & Johnson (NYSE:JNJ): $174.9 B
The Coca-Cola Co. (NYSE:KO): $170.9 B
Pfizer Inc. (NYSE:PFE): $169.5 B
Wells Fargo & Co. (NYSE:WFC): $168.5 B
Philip Morris International (NYSE:PM): $144.0 B
Intel Corp. (NASDAQ:INTC): $132.6 B
Oracle Corp. (NASDAQ:ORCL): $131.4 B
JPMorgan Chase and Co. (NYSE:JPM): $130.0 B
Verizon Communications (NYSE:VZ): $117.5 B
Merck & Co. Inc. (NYSE:MRK): $116.3 B
PepsiCo. Inc. (NYSE:PEP): $107.7 B
Facebook (NASDAQ:FB): $104.0 B
Amazon.com Inc. (NASDAQ:AMZN): $99.71 B
Abbott Laboratories (NYSE:ABT): $98.15 B
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