Mark Zuckerberg took Facebook public on May 18, 2012, in what was then the largest initial public offering (IPO) in tech history. According to CNN, 567 million shares were exchanged at an average price of $38 per share at the close, breaking the record for the largest first trading day set by General Motors in 2010. Zuckerberg’s company is now known as Meta, and its stock is valued at $200. How do these returns compare to those of Meta’s Big Tech rivals, and whose stock has become the most profitable over the previous decade?
When comparing prices today and ten years ago, as shown in our chart based on data from Yahoo Finance and Statista calculations, investment in Amazon would have paid out the most. On May 17, 2012, a $1,000 investment would have yielded $10,149 today. Second place goes to Microsoft, which went public in 1986 and would have returned $8,798 to investors if they had purchased $1,000 worth of stock at the time. Meta, on the other hand, is in last position, having generated only $5,264 out of $1,000.
Even though minor fluctuations in tech stocks are common, this sector has suffered some significant declines in recent weeks. While Amazon, Microsoft, Alphabet, and Apple’s stock prices began to fall in early April, Meta felt the stock market tremors even earlier. The company’s stock began its downward spiral on January 10 at around $332, and it is now worth nearly 40% less.
Investors betting that GAFAM will come down from its epidemic high sooner rather than later, and the excessive rise in interest rates, which makes investing in secure bonds rather than high-risk equities more tempting, are two causes for the drop in value.
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