Stock Market!! The world’s biggest online social network knocked the world’s largest retailer out of the top 10 list of the highest-valued companies in the Standard & Poor’s 500 index.
While the switch is mostly symbolic — nothing specific happened this week to warrant it, and the difference between the two giants is not that big — it signals investors’ insatiable appetite for successful tech stocks. Apple, Microsoft and Google top the list of the highest-valued companies in the U.S., 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 $238 billion at the close of trading, according to FactSet. Its stock gained $3.14, or 3.7 percent, at $87.88.
Comparing the two companies’ financial results, though, shows just how much Wall Street is investing in growth and potential — Facebook — versus existing size and might — Wal-Mart. In the first three months of this year, Facebook’s total revenue of $3.54 billion amounted to just a little more than Wal-Mart’s total profit for its fiscal first quarter of $3.34 billion. But while Facebook saw revenue grow 42 percent in the same period, Wal-Mart’s declined slightly.