Facebook found itself in the hot seat once again on Wednesday when its CEO, Mark Zuckerberg, testified before Congress. Zuckerberg was questioned on a number of issues, including data privacy and cryptocurrency, as well as race, diversity and civil rights.
Yet despite controversy surrounding the company, Facebook’s stock has shown strength and resilience through the years.
If you invested in Facebook during its initial public offering, or IPO, you would have made a healthy profit. A $1,000 investment made on May 18, 2012, the date Facebook went public, would be worth nearly $4,900 as of Oct. 24, 2019, for a total return of around 400%, according to CNBC calculations. In the same time frame, by comparison, the S&P 500 earned a total return of around 170%. Facebook’s current share price hovers around $184.
While Facebook’s stock has done well over the years, any individual stock can over- or underperform and past returns do not predict future results. Two major factors that played into Facebook’s success over time are its acquisitions of Instagram in 2012 and WhatsApp in 2014. As legacy Facebook matured, these additions to its app portfolio helped drive user growth to new heights.
CNBC: Facebook stock as of Oct. 24, 2019.
During Zuckerberg’s visit to Capitol Hill this week, legislators focused on learning more about Facebook’s plan for a new cryptocurrency, libra. Specifically, members of the House of Representatives are concerned with how the Libra Association, which is headquartered in Geneva, Switzerland, will be regulated and governed.
Following Zuckerberg’s testimony, lawmakers still weren’t satisfied and questioned whether anything had been accomplished. Several House members also seemed confused as to why Facebook chose Switzerland as Libra’s home base.
Yet despite friction between Zuckerberg and legislators, Facebook’s stock rose 2% the day of the hearing.