Nvidia Corp. became the seventh-largest U.S. company Monday as it overtook Facebook parent Meta Platforms Inc. for the first time.
A reshuffling among the ranks of the most valuable U.S. companies reflects Nvidia’s
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swift ascent over the past few years as well as Meta’s
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recent fall from grace, which has shaved $267 billion off the company’s market value since Wednesday’s close, according to Dow Jones Market Data.
Nvidia finished Monday’s session with a market value of $618.2 billion, while Meta closed with a market value of $612.2 billion, according to Dow Jones Market Data. Shares of Nvidia ended up 1.7%. in the session, while Facebook’s stock lost 5.1%.
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Nvidia now sits directly behind Berkshire Hathaway Inc.
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which ended Monday’s trading with a $706.97 billion valuation.
The chip maker has been climbing rapidly up the market-cap leaderboard as strong traction for its gaming and data-center businesses have driven improved financial performance. Wells Fargo analyst Aaron Rakers wrote Monday that he believed the ramp of Nvidia’s Ampere graphics processing unit (GPU) was still “early in its cycle.”
Nvidia was the 15th-largest U.S. company as of a year ago and the 50th largest as of two years ago, according to Dow Jones Market Data. It previously had held the No. 7 spot when it beat out Berkshire last November, but Monday marks the first time that the company is ahead of Meta.
Meta, meanwhile, recently outlined a series of business challenges that it expects could hamper results. These pressures prompted Meta to deliver a weaker-than-expected outlook last week, helping to send its shares cratering to their worst performance on record.
The social-media company is feeling the weight of recent privacy-related changes made by Apple Inc.
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that limit the ability of third parties to track user activities online. Meta also must contend with changing user preferences brought on by TikTok’s rise: While Meta has its own TikTok-like feature in Reels that is gaining steam with users, the company has room to improve Reels’ revenue potential.
See also: Meta stock hits 52-week low as European leaders buck at threats to shutter Facebook and Instagram
Meta had been the sixth-largest U.S. company as recently as Wednesday, according to Dow Jones Market Data, but now Berkshire and Nvidia are ahead.
Source: https://www.marketwatch.com/story/nvidia-becomes-7th-largest-u-s-company-as-it-passes-facebook-owner-meta-for-the-first-time-11644270523?siteid=yhoof2&yptr=yahoo