Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.
Facebook’s Big Decade
One market leader of the last decade was social media giant Facebook, Inc. (NASDAQ: FB).
Facebook held one of the most high-profile IPOs in history back in May of 2012, selling IPO shares for $38 and raising $16 billion. The Facebook IPO was initially considered a huge flop, but patient investors have been rewarded for riding out the initial volatility.
Despite slowing growth in its Facebook platform, the company has supplemented its core platform by acquiring Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion. Facebook has also emerged as one of the two largest online advertisers in the world, allowing the company to effectively monetize its massive user base.
Facebook hit its all-time low of $17.55 within months of its IPO before bouncing to above its IPO price by mid-2013. Facebook shares jumped 20% after the company reported 53% revenue growth and a $333 million profit in the second quarter of 2013, and the stock never looked back.
By the end of 2013, Facebook shares hit $50. By the end of 2015, they were above $100. By mid-2018, the stock made it to $218.62 before it finally stalled out. Fears surrounding regulatory crackdowns related to political abuse and data mishandling and potential antitrust action due to Facebook’s business practices weighed in the stock, but Facebook’s business kept churning out record profits and revenues.
2020 And Beyond
Negative headlines sent Facebook shares back down to as low as $126.85 in late 2018, but the stock has since resumed its rally. In the opening weeks of 2020, Facebook made new all-time highs, hitting $222.75 in intra-day trading.
Despite the controversy and struggles along the way, Facebook remains one of the top investments of the past decade. In fact, $100 in Facebook IPO shares would now be worth $578.
Looking ahead, analysts are expecting more all-time highs from Facebook in 2020. The average price target among the 47 analysts covering the stock is $250, suggesting 13.9% upside from current levels.