Facebook Inc. is now officially the fastest S&P 500 Index company to go from IPO to a $250 billion market valuation.
Mark Zuckerberg’s social network company closed up 2.4 percent on Monday, marking a mere three years after its initial public offering. That race to $250 billion beat the previous record holder — Google Inc. — by about five years, according to Bloomberg.
Of course, Facebook had a market value of $104.2 billion at its IPO, so quite a head start over most companies.
Facebook’s shares trade at 87 times earnings, almost five times the average in the S&P 500. Meanwhile, companies in the Nasdaq Internet Index trade at a price-earnings ratio of 27. Facebook is now the ninth-biggest company in the S&P 500.
The company closed at $90.10 per share (FB) on Monday.
Facebook topped earnings estimates in the first quarter of 2015. For the three-month period ended Mar. 31, 2015, the company’s net income was $1.19 billion, up 28 percent versus $926 million in 2014’s first quarter. Mobile advertising made up 73 percent of the social giant’s advertising, up from 59 percent at the same time a year ago.
Analysts estimate that mobile ad sales rose 37 in the second quarter. Q2 results will be reported on July 29.