Facebook turns 10: "The most important tech company of the past decade”

Tue, Feb 4, 2014, 9:17 AM

Since its start in a Harvard dorm room 10 years ago today, Facebook (FB) has grown into a giant tech company, with 1.23 billion users worldwide, almost $8 billion in annual sales and a market cap of $151.1 billion. After a famously botched IPO in May 2012, the stock has gained 61% and its cash reserves have ballooned to $11 billion, even after major acquisitions like Instagram.

"Facebook is the most important tech company in the last decade, more important than Apple (AAPL) by far, in terms of changing daily behavior," says Yahoo Finance's Jeff Macke.

Seventeen percent of the world's population and almost half the U.S. population subscribes to Facebook, and it's the most popular social networking site for adults -- 71% vs. 22% for LinkedIn (LNKD) and 18% for Twitter (TWTR), according to Pew Research.

"Facebook is such a part of our everyday lives," says Macke, and he expects it will stay that way because of its ability to change with the times.

Facebook has been able to smoothly transition from desktop to mobile, Macke notes, which will be the key to the company's future success.

As for its acquisition of Instagram, it was a "genius" move, says Macke.

In its last quarter average revenue per user rose 24% to $2.14.

"That's a very healthy business when you have over a billion users...it's one of the great growth stocks that we have, especially in a tough environment," says The Daily Ticker's Aaron Task.

Facebook has "gone from a money losing idea to a tangible company that brings in cash," adds Macke.

Its profit in 2013 was $1.5 billion--almost 30 times the $53 million reported for 2012, and revenues grew to $7.9 billion, from $5.1 billion.

Will Facebook be here 10 years from now?

"Absolutely. No question," says Macke.

Watch the video above to see why Macke is so optimistic about Facebook's future.

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