New York, June 24: Social network site Facebook has knocked Wal-Mart, the world’s largest retailer, out of the top 10 list of the highest-valued companies in the Standard & Poor’s 500 index.
The world’s biggest online social network is now bigger than Wal-Mart, at least when it comes to its value on the stock market.
Apple, Microsoft and Google top the list of the highest-valued companies in the US, and Facebook looks to be on its way to joining them.
A company’s market value is calculated by multiplying the number of shares of stock it has in circulation by the current price of one share.
Facebook Inc was valued at USD 238 billion at the close of trading on Tuesday, according to FactSet. Its stock gained USD 3.14, or 3.7 per cent, at USD 87.88.
Wal-Mart Stores Inc. was valued at USD 234 billion. Its stock dipped 22 cents to USD 72.57.
Facebook, which is based in Menlo Park, California, has been on a roll this past year, its shares up about 34 per cent in the past year compared with just 8.2 per cent for the S&P 500 index. Its quarterly results have consistently surpassed expectations.
Bentonville, Arkansas-based Wal-Mart, meanwhile, asked for investor patience after its most-recent earnings report showed a 7 per cent profit decline due to the effects of the strong dollar and higher worker wages and spending on its online operations.
In the first three months of this year, Facebook’s total revenue of USD 3.54 billion amounted to just a little more than Wal-Mart’s total profit for its fiscal first quarter of USD 3.34 billion.
Facebook witnessed its revenue growth 42 per cent in the same period, while Wal-Mart’s declined slightly.
(With Agency Inputs)