FACEBOOK SHARES CLIMBING CLOSE TO DEBUT STOCK PRICE – If you were one of those unfortunate people who bought Facebook shares at the opening bell then you’ve just had a year of investor misery; but things might just be looking a little rosier.
Since going public in 2012 Facebook shares have plummeted and then risen again and over the last few months have been gaining ground as its mobile advertising success has seen profits rise.
Yesterday Facebook’s share price hit a fraction under $38 a share; its debut price for the first time, giving many stockholders signs of relief in believing that they once backed a thoroughbred that turned out to be a nag.
The surge in stock price is down to the company reporting quarterly results that clearly showed the market that Facebook does have the potential to build a huge mobile advertising business on the back of its social network.
With a reported 1.2 billion users stocks surge 40% and has never looked so healthy since going public.
There is little doubt that Facebook has reached a milestone and whilst the stock price now stands at $37.97 some Wall Street analysts are wondering if there is any longevity in the social network and more importantly its ability to attract advertisers.
Within one month of its IPO Facebook lost over half its share value leaving many investors seriously out of pocket with connotations that its initial share price was vastly over valued simply to make a few initial investors extremely rich.
At the closing bell yesterday Facebook shares dropped slightly to $37.63 but despite this there remains high optimism in the market that Facebook will provide investors with a return in the near future; providing advertising revenue continues to grow.
I doubt there are any champagne corks popping just yet but at least most feel the worst of Facebook’s share prices woes could be behind them.
Would you buy Facebook stock or do you think that dot com stock is simply too high risk? Please leave your comments below.