Which companies are boosting earnings by selling shares?
In a series of tweets on Tuesday, the CEO of Facebook, Mark Zuckerberg, said the company had raised $100bn in new funding and added “more than $10bn in liquidity”.
“We have $100b of cash in our account, so we’re making a lot of progress on our business,” Mr Zuckerberg said.
“We’re doing well.”
Facebook said it was taking advantage of the market’s current liquidity as investors looked to buy its stock.
Shares in the company were up nearly 12% at $18.40 in early trade.
Facebook has been a driver of the stock market in recent years.
The company was one of the first internet firms to launch an online news site in 1999, and in the following years it gained notoriety for the success of its News Feed, which was able to deliver high-quality content across multiple devices.
The Facebook logo is seen in this image taken on October 13, 2016.
“Our strategy is to become more efficient, more relevant and more powerful with each new generation of devices and the capabilities that these devices bring,” Mr Facebook said in a blog post.
“That’s why we’re investing in our hardware and software, and building our cloud and social media businesses, to give us the power to deliver more and more of what we love.”
Investors have long speculated that Facebook’s stock could rise to as much as $200 a share, which would make it the biggest publicly traded company in the world.
However, analysts said the growth of the internet giant was largely driven by its media and advertising businesses.
Facebook’s shares have seen a number of price drops over the years, but analysts said Tuesday’s rise was the biggest since March 2016.
Analysts at Barclays Capital said: “It was not a big surprise to see Facebook raise more money.
It is certainly a sign of confidence for investors to see more of this type of financing.”
We see more and longer-term opportunities in Facebook’s media and social businesses as well as its growth in its business of offering products and services to users.
“Shares of WhatsApp fell about 5% on Tuesday.
Mr Zuckerberg also added: “The big question is whether we can continue to innovate, grow our business, and keep pace with changing consumer expectations.”
Facebook is doing well because we’re doing better.
But we can’t do it without more of the right ideas, the right people and the right tools.”