In the days after its infamously mishandled initial public offering in May 2012, it looked as if Facebook would struggle to become a must-own for fund managers.
Now the company's $190 billion market value makes it bigger than such bellwethers as Coca-Cola and AT&T. It's not a member of the Dow industrials, but if it were, it would be larger than two-thirds of that index's 30 members.
Shares of the world's No. 1 social network touched a record high of $76.74 on Thursday after earnings and revenues easily topped analysts' forecasts, boosting its market value to nearly $194 billion. That ranks it 15th in the Standard & Poor's 500 benchmark index, just below the $196 billion market cap of International Business Machines Corp.
"A 100-year-old company with real assets versus a company admittedly with virtual assets and they are trading at the same market cap - crazy," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.
The speed of Facebook's rise to mega-cap status is what's notable. It took Apple Inc nearly three decades to achieve such a market value; Google Inc needed five years.
Facebook has only been public for a little more than two years, and only joined the S&P 500 seven months ago. Since S&P Dow Jones Indices announced the addition on Dec. 11, Facebook shares have risen 54 percent.
The gains represent a reversal of fortune for the social media company. After a botched IPO that infuriated investors in May 2012, the stock slumped, underperforming for 15 months before finally eclipsing its offering price of $38 in August 2013. Since then, Facebook shares have been unstoppable, doubling in less than a year.
"People understand the world is moving to mobile, and when you look at the time spent on mobile, Facebook has the lion's share," said Walter Price, senior portfolio manager and managing director of the AllianzGI Global Technology fund, which owned more than a million shares as of June 30.
The firm has leveraged its position by selling put options, or negative bets on the stock, and buying more call options, or bets on the shares rising further. "This is a momentum stock you can put a P/E on," Price said.
Facebook's rally has left e-commerce giant Amazon Inc in the dust. That company's value peaked around $187 billion in January, but closed Thursday at $165 billion. Amazon reported disappointing results afterwards, which dragged down its stock by 7