Facebook is one of the largest and most well-known technology companies in the world. Founded in 2004 by Mark Zuckerberg and his college roommates, Facebook has grown over the past two decades to become a ubiquitous presence in social media, with over 2.9 billion monthly active users as of the third quarter of 2022. With a market capitalization of over $500 billion as of October 2022, Facebook is one of the most highly valued public companies in the world.
Given Facebook’s immense size and reach, it is natural to wonder how and where its stock is traded. Specifically, many may be curious whether Facebook’s stock is listed on the New York Stock Exchange (NYSE), which is the world’s largest stock exchange located in New York City.
The Initial Public Offering
Facebook first went public on May 18, 2012 in one of the largest and most anticipated initial public offerings (IPOs) in history. The IPO raised $16 billion for the company, putting Facebook’s initial market capitalization at over $100 billion.
Leading up to the IPO, there was much speculation about which stock exchange Facebook would list its shares on. The two leading options were the NYSE and the NASDAQ, both located in New York City. Facebook ultimately chose to list its shares on the NASDAQ under the ticker symbol “FB”.
The NASDAQ was selected for a few key reasons:
Technology Focus
The NASDAQ stock exchange has historically been the home for technology and internet companies. Many of the large technology firms, such as Apple, Microsoft, Amazon, and Alphabet (Google), list their shares on the NASDAQ. Given Facebook’s identity as a technology company, the NASDAQ seemed a natural fit.
Less Stringent Listing Requirements
The NASDAQ tends to have less stringent listing requirements than the NYSE in areas such as profitability and corporate governance. Given that Facebook was still quite young and rapidly growing at the time of its IPO, the company favored the NASDAQ for its flexibility.
Lower Fees
The NASDAQ also traditionally charges lower listing fees than the NYSE, which was likely another factor in Facebook’s decision given the sheer size of its offering.
Overall, while the NYSE was considered, Facebook saw the NASDAQ as the optimal stock exchange for its profile as a young technology company. The NASDAQ allowed Facebook to list its stock quickly while providing an investor base familiar with tech companies.
NYSE vs. NASDAQ
While Facebook chose to list on the NASDAQ, both the NYSE and NASDAQ are leading stock exchanges based in New York City. Here is an overview of each exchange:
New York Stock Exchange (NYSE)
- Located on Wall Street in New York City
- Traces its origins back over 225 years to 1792
- Largest stock exchange in the world by market capitalization of listed companies
- Home to many “blue chip” stocks and household names such as Coca-Cola, GE, IBM, Johnson & Johnson
- More stringent listing requirements related to earnings, corporate governance, etc.
- Higher fees for listing compared to NASDAQ
NASDAQ
- NASDAQ originally stood for National Association of Securities Dealers Automated Quotations
- Founded in 1971 as the world’s first electronic stock market
- Second largest stock exchange in the world by market capitalization
- Home to many of the largest technology companies such as Apple, Microsoft, Amazon, Google
- More flexible listing requirements than NYSE
- Lower listing fees compared to NYSE
In summary, the NYSE tends to be home to more established blue chip companies, while the NASDAQ caters to newer, more technology-focused companies. Companies choose between the two exchanges based on factors like listing requirements, industry fit, fees, and investor base.
Facebook’s Market Capitalization Milestones
Since its founding, Facebook has achieved massive growth in its market valuation:
| Date | Milestone |
|---|---|
| May 2012 | IPO at $100+ billion valuation |
| August 2012 | First stock to lose $50 billion in market value |
| October 2012 | Surpasses $200 billion market cap |
| December 2013 | Joins $300 billion market cap club |
| June 2017 | Reaches $500 billion market valuation |
| July 2018 | Largest one-day stock drop ever, loses $119 billion in value |
| January 2020 | First U.S. company to hit $1 trillion market cap |
This staggering growth places Facebook among an elite group of companies (like Apple, Microsoft, and Amazon) that have achieved 13-figure market valuations. It reflects the company’s dominance of social media and its ability to monetize its billions of users through advertising.
Recent Facebook Stock Performance
Facebook debuted on the public markets with an opening share price of $42.05 on May 18, 2012. Adjusting for three subsequent stock splits, this equates to an effective IPO price of around $0.10 per share.
Facebook hit its all-time high share price of $384.33 in September 2021 before declines in the overall technology market brought its price back down. Still, Facebook trades at around $130 per share as of October 2022, over a thousand times its effective initial price.
The chart below shows Facebook’s share price performance from its IPO to present day:
As the chart shows, Facebook’s stock has been volatile at times but demonstrated an overwhelmingly upward trajectory since its IPO. Its long-term growth reflects the company’s ability to adapt and find new ways to monetize its core social media products like Facebook, Instagram, and WhatsApp.
Facebook’s Influence on the S&P 500
The S&P 500 is a stock market index that tracks the stocks of 500 large-cap U.S. companies. It is one of the most commonly followed stock market benchmarks.
Due to its massive market capitalization, Facebook has a substantial weighting in the S&P 500. As of October 2022, Facebook is the 8th largest company in the S&P 500 with a weighting of 2.224%.
The top 10 companies in the S&P 500 are:
| Company | Weighting |
|---|---|
| Apple Inc. | 6.575% |
| Microsoft Corporation | 5.560% |
| Amazon.com, Inc. | 2.824% |
| Alphabet Inc. Class A | 2.431% |
| Alphabet Inc. Class C | 2.178% |
| Tesla Inc | 2.140% |
| Berkshire Hathaway Inc. Class B | 2.028% |
| Facebook, Inc. Class A | 2.224% |
| Johnson & Johnson | 1.652% |
| UnitedHealth Group Incorporated | 1.549% |
With a 2%+ weighting, Facebook exerts substantial influence on the overall direction of the S&P 500. When Facebook has a good or bad trading day, it can singlehandedly move the index due to its outsized effect. Investors track Facebook’s stock closely due to its power to sway major indexes.
Technical Details of Facebook’s Stock
Here are some key technical details on Facebook’s stock listing on the NASDAQ:
- Stock ticker symbol: FB
- Exchange: NASDAQ
- Sector: Communication Services
- Industry: Interactive Media and Services
- Share type: Common stock
- Shares outstanding: ~2.7 billion
- 52-week range: $88.09 – $384.33
- Dividend yield: N/A (Facebook does not pay dividends)
Facebook has over 2.7 billion shares outstanding trading on the NASDAQ exchange. It is categorized in the communication services sector under the interactive media and services industry along with companies like Twitter, Snapchat, and Match Group.
Key competitors for investments compared to Facebook are companies like Apple, Microsoft, Amazon, Alphabet (Google), Meta Platforms (Facebook), and Tesla.
Conclusion
In summary, while Facebook spurned the NYSE to list its shares on the NASDAQ exchange instead, it has grown to become one of the largest and most valuable companies traded on any exchange. With massive reach among global social media users and unparalleled advertising targeting capabilities, Facebook is a juggernaut that exerts substantial influence over broader stock market indexes. Despite recent stumbles, its long-term stock performance reflects the company’s quasi-monopoly in social media and the network effects inherent in its platforms. For the foreseeable future, Facebook remains a linchpin in the global technology sector and a closely watched barometer of the entire stock market.