Facebook Experiences Further Stock Increase
Earlier this month, on a day that saw an increase for many growth tech stocks like Facebook, the Nasdaq Composite stock rose by 0.2%. This tech-heavy composite is made up of stocks for leading tech companies including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FB) and more.
What Caused The Increase?
There are many potential reasons for Facebook’s latest stock increase, including:
Growing demand for the stock
Over the last six months, there has been a growing demand for the NASDAQ:FB stock with a visible bullish trend seen by traders. The healthy and consistent demand for Facebook stocks has amounted to the company currently commanding a market capitalisation greater than $1 trillion.
The NASDAQ:FB stock, alongside many other leading tech stocks, experienced significant benefits from the lockdowns of the past 18 months as a result of the COVID-19 pandemic.
This is a direct result of more people staying inside and spending significantly longer amounts of time on social media sites like Facebook and purchasing tech products from Apple and Microsoft. The latest stock increase for Facebook, therefore, can potentially be linked to the continuation of the global pandemic.
Tech-wide increase with the Delta variant
As mentioned briefly above, the ongoing COVID-19 pandemic could be the root for Facebook’s latest stock increase, but it could more specifically be down to the emergence of the latest COVID-19 variant – also known as Delta.
With the Delta variant being reportedly more transmissible and contagious than other variants of COVID-19, many people are continuing to work from home, which increases the likelihood and anticipation of more time being spent on the internet.
In more good news for the social media site, its shares are up by 35% in the last six months and 11% in the last three. The company’s advertising revenue is soaring also, with a second-quarter revenue growth rate of 56%.