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Facebook market value climbs above $200bn





Facebook's market value climbed above $200bn for the first time last night, making the social networking giant the world's twenty-second biggest company.

Shares in the American group advanced 0.8pc to finish at a record high of $77.89 on Wall Street on Monday evening, giving Facebook a market capitalisation of $201.6bn.

Surpassing the milestone marks a reversal of fortunes for the company, which was hit by a disastrous initial public offering two years ago.

Facebook was floated at $38 a share in May 2012, but fell below the IPO price on its second day of trading and slumped to a low of $17.55 in September that year.

The float was hit by a trading glitch on the day of the IPO, when orders for shares were not properly processed, and the falling share price reflected investor concern over whether the company will be able to grow profits fast enough to justify its valuation.

However, growth in Facebook's media advertising has boosted confidence in the stock and has seen the shares rally 42.5pc since the start of 2014.

Facebook's market cap is now half that of Google's, but bigger than IBM, which is valued at $189.7bn.