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Meta just surged past Tesla in market value for the first time in 16 months

Apr 21, 2023, 17:20 IST
Business Insider
Meta's market capitalization passed Tesla's for the first time since December 2021 on Thursday.Facebook
  • Meta overtook Tesla in market value for the first time in 16 months on Thursday.
  • Mark Zuckerberg's social-media giant is now the seventh-largest company by market capitalization.
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Meta Platforms soared past Tesla in market value for the first time in 16 months on Thursday, thanks to the surge in its stock price this year and a sharp drop in Tesla shares on the day.

The social-media giant had a market capitalization of $547 billion at the closing bell, according to Yahoo Finance, which comfortably exceeded the automaker's $517 billion market cap. The last time Meta was worth more than Tesla was December 20, 2021.

Mark Zuckerberg's company — which owns Facebook, Instagram and WhatsApp — overtook Tesla after shares in the EV maker plunged nearly 10% on Thursday, owing to investors' concerns that aggressive price cuts are eating away at its profit margins.

Meta has also been one of the US's best-performing public companies this year. Its shares have surged 77%, buoyed by Zuckerberg's promise to make 2023 a "year of efficiency" in part by laying off workers to cut costs.

Tesla's stock has still climbed a robust 32% year-to-date, despite having a portion of of its gains wiped out on Thursday.

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Elon Musk's company posted first-quarter earnings that broadly met Wall Street's expectations. However, it disclosed that its net income had plummeted 24% year-on-year, which analysts attributed to its aggressive price cuts.

Meta and Tesla are now respectively the seventh- and eighth-largest companies in the world by market capitalization, per CompaniesMarketCap data.

While Meta is now more valuable than Tesla, Zuckerberg's personal fortune of $78 billion is still less than half of Musk's $164 billion net worth, according to the Bloomberg Billionaires Index. The pair hold similar-sized stakes in their respective companies, but Musk also owns valuable equity in SpaceX, Twitter and his other businesses.

Read more: Wall Street has high hopes for Netflix as it sees 'big opportunities' in the coming crackdown on password sharing

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