Facebook hits $50bn as investors seek tech profits
The year has started promisingly for at least two technology companies, with Facebook and Apple both enjoying astronomic valuations.
Facebook has been tipped as a $50 billion social networking powerhouse following a $500 million private funding cash injection, while Apple was recently valued at $300 billion after a stock surge on the back of a stellar 2010.
The Facebook price hike follows a reported deal with Goldman Sachs investors, which the New York Times claims involves Russian investors and other Goldman customers who are expected to raise as much as $1.5 billion from investors.
Neither Facebook nor Goldman Sachs is commenting on the New York Times story.
The news comes hot on the heels of Apple breaking the $300 billion valuation barrier after shares soared by 2% on the first day of trading of 2011.
A closing share price of $329.57 meant Apple was worth $302 billion as investors continue to see profit potential from Apple’s dominant position in the emerging tablet market.
Although rivals are expected to launch iPad alternatives at CES this week, Apple still has a significant head start.