Facebook Market Value Tops $200 Billion


The market value of the social networking site Facebook has crossed the $200 billion mark, making it the 22nd largest company in the world.
The company's stock closed at $77.6 Monday - a new all-time high - giving it a market capitalisation of $200.26 billion, media reports said.
According to reports, future prospects for Facebook are bright because the firm is yet to monetise acquisitions like photo-sharing site Instagram and mobile messaging service WhatsApp.
It is also some time away from placing a significant number of pricey video ads in users' news feeds.
Facebook has also purchased virtual reality headset maker Oculus VR Inc for nearly $2 billion.
The company also announced Monday it now has 100 million users in Africa.
The company now ranks just behind Verizon Communications Inc and ahead of Toyota Motor Corp on the list of the world's biggest corporations.
Recent media reports indicated that Facebook advertising has become costlier but the social networking site has cut down on the number of advertisements.
"The average price per ad was 123 percent costlier in the second quarter of 2014 compared to last year," Dave Wehner, Facebook CFO, said in the latest earnings call.
Facebook also displayed 25 percent lesser ads but revenues from advertising still increased by 67 percent.
"The price of ads correlates to the value that they create. We continue to focus on making those ad units better and better, more relevant and targeted for the people who use Facebook, as well as for marketers," Wehner added.
A design change in April this year left lesser space for advertisement on a page.
The company said "people will see fewer ads on Facebook so some advertisers may see increased prices at auction".

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