Facebook Inc. (NASDAQ:FB) has above $11 billion short-living investments in cash and only $119 million in longstanding financial obligation. These figures are calculated after spending on two major expenses; first $19 billion to take possession ofWhatsApp, a giant social messaging firm, and second $2 billion to win virtual reality organization Oculus VR in the beginning of the last year.The company also earned $12.5 billion last year along with the total profit of $10.3 billion for entire perimeter of approximately 82%. Facebook Inc.’s (NASDAQ:FB) market capitalization held at $234.6 billion similar to previous Friday.
DJIA components Verizon Communications Inc. (NYSE:VZ) has a market capitalization of $205.9 billion,whereas the market capitalization of Coca-Cola Co. (NYSE:KO) is $177.5 billion. Facebook Inc. (NASDAQ:FB) has exceeded them already and has become greater than both of them.
There’s a huge difference between the balance sheets of Verizon Communications Inc. (NYSE:VZ) and Facebook Inc. (NASDAQ:FB) which has a longstanding debt of $110.5 billion. Verizon Communications Inc. (NYSE:VZ) has practically same amount of money and short-living investments. The point of differentiation comes at income and profits earned. Taking about Verizon Communications Inc. (NYSE:VZ), the earnings for the last year were calculated to be $127.1 billion with a total profit of $77.1 billion,for a perimeter of almost 61%. The functional perimeter reached 15.4% in comparison to 40% at Facebook Inc. (NASDAQ:FB).
Coca-Cola Co. (NYSE:KO) has an identical situation. It owes a longstanding debt of approximately $19 billion and short-living investments of almost $22 billion. The total income earned last year was calculated to be $46 billion with the addition of a profit found to be equal to $28.1 billion, for a perimeter of 61%. Working perimeter approached 21%.
All of these spending by Coca-Cola Co. (NYSE:KO)estimated to be $18.4 billion were transferred to SG&A the previous year. Facebook Inc. (NASDAQ:FB) paid out $2.7 billion on R&D as well as on SG&A. While Verizon Communications Inc. (NYSE:VZ) paid $41 billion on working expenditure in SG&A last year.
The major difference between these two old firms and Facebook Inc. (NASDAQ:FB) is because of the variation in their price to take possession, in the maintenance of physical assets, and giving out,and the price in winning distributing and in maintenance of a product, which will be manufactured once and supplied to uncountable users at practically incrementing no price.
Even though Facebook Inc. (NASDAQ:FB) has so many rivals, but the positive part is that it doesn’t have to pay a huge part of its earning for creating its new users by attracting them or any other way. Social media has this benefit of free network effects,while this is not the case in real-world limitations.These effects later result in income, profit and shareholder price along with development. The hoard price ofFacebookInc. (NASDAQ:FB) has increased up to 200% as compared to that of July, 2013. Whereas in contrast to this, Coca-Cola Co. (NYSE:KO) and Verizon Communications Inc. (NYSE:VZ) reduced to 0.5%.Both Coca-Cola Co. (NYSE:KO) and Verizon Communications Inc. (NYSE:VZ) will have to get into totally novel business at a considerable price while Facebook still has chances to develop.