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Facebook Nears IPO Price as Stock Jumps Again

  +Follow July 30, 2013 4:50PM
Tickers Mentioned:

Facebook Inc (FB) is fast approaching $38 dollars a share, which is the price Facebook had their IPO at in May 2012. While Facebook is a difficult stock to value, mobile has long been seen as the key to realizing the potential of its 1.1 billion users.

 In April 2013, the social media company announced that they had redesigned their mobile experience to realize the full potential of mobile advertising. The news hinted that Facebook’s stock might be primed for a turnaround. But few predicted to what a degree the stock would rebound.

Since its triumphant second quarter 2013 earnings report on July 25, Facebook stock has skyrocketed 43.11 percent. The news that got investors giddy was that mobile advertising was now 41 percent of the company’s total ad revenue, and that number was expected to continue climbing in Q3. In the previous year’s second quarter, mobile accounted for zero of FB’s revenue.

As investors reap healthy profits on Facebook’s rise (or, for investors who got in at the IPO, at least recoup), analysts are beginning to question whether the stock’s rapid recovery has been too much, too soon. On July 26,  S&P Capital IQ analyst downgraded Facebook from buy to hold, arguing their P/E ratio can’t sustain such a meteoric rise. The company currently trades at 154 times earnings. That’s higher than all but five companies in the S&P 500. To compare, when Facebook had their IPO, their P/E ratio was 85.

But some analysts, despite the jump, remain bullish on Facebook. Brian Wieser of Pivotal Research Group LLC maintains a buy rating on the stock, and says that “at the time of the IPO the market didn’t really understand Facebook’s business. Renowned analyst Michael Pachter of Wedbush Securities backs this notion, claiming that the entire mobile experience encourages users to “check in day in and day out.”

Facebook’s stock was up 6.20 percent to close the day at $37.63 share, just 37 cents short of their IPO, amid exceedingly heavy volume.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for FB
Hazel Dunn
27 Feb 15 21:09:30
@socialbakers The rise of mobile advertising! $FB #fbearnings
#SocialMedia NC
27 Feb 15 21:06:09
You think Snapchat is for sexting, but it's actually a giant threat to Google… http://t.co/4bWPbnvuMB #Facebook $FB http://t.co/l8nK6HC4nh
Stock Hobbit
27 Feb 15 21:04:06
Logging in now to live stock chat http://t.co/ndv5bWOOj4 $GOOG $AAPL $FB $EBAY #options #stocks #daytrading http://t.co/Oo7mVY67TD
Scott Beaulier
27 Feb 15 20:58:41
$MSFT market cap during '99 #Nasdaq 5k was almost 2X current market cap; Worldcom's '99 worth exceeded $FB now. http://t.co/JxOP9TFqwk
IH News Desk
27 Feb 15 20:54:47
$FB Reviews Updated Friday, February 27, 2015 11:11:00 PM $VXX $TBT $RAD $ARIA http://t.co/I6svQowbEq
27 Feb 15 20:54:11
Our Penny Stock Picks Gained Over 342% In 2 weeks! Get Our Next Alerts Early: http://t.co/iPnInrsUzz $F $SIRI $FB
Swing Trade Warrior
27 Feb 15 20:54:06
Follow SwingTradeWarrior on #instagram & #stocktwits @swingwarrior & #facebook http://t.co/ZDNmNt6Aqd #follow #retweet $FB #instagram #rt
Timothy Sykes
27 Feb 15 20:50:27
How To Make $1,500 In 15 Minutes http://t.co/q8tdIDvkYB on $BIOC $HMNY $EYES learn this pattern $FB $TWTR peeps!
Swing Trade Warrior
27 Feb 15 20:34:26
Twitter revenue per advertiser exceeds Google, Facebook - Business Insider http://t.co/2WyNqKRhW7 #News #google #facebook #twitter $goog $fb
27 Feb 15 20:32:45
RT @Sassy_SPY: .@reddogt3 could be options expiration as here is $LNKD and $FB - both pinning well so far http://t.co/WaBZDFjjlA
Russell Barbour
27 Feb 15 20:32:19
http://t.co/7iYkyYwNsB <-- Don't blindly copy Tim Sykes or SuperTrades! $OIL $VMW $USD $TWM $ANIP $DRI $SCO #stocks $FB
Lusitanian Traders
27 Feb 15 20:28:54
FB - Pivots (support and resistance) $FB http://t.co/f3jIgSU0G2
Emmanuel Amberber
27 Feb 15 20:20:47
RT @semil: @pmarca today, value of Bay Area co's $AAPL + $GOOG + $FB + $TWTR + $LNKD + Airbnb + Uber + Dropbox + Square + Stripe + Pinteres…
27 Feb 15 20:11:34
$FB looks like it's establishing new short term support @78$
Brian Slay
27 Feb 15 20:08:07
@cereal_killerx3 buying $fb stock off this
OM Daily Wisdom
27 Feb 15 20:05:55
$YHOO $AMZN $FB $V 2015 Stocks To Love and Hate: Update - Update from Option Millionaires - Stock Options Chatroom... http://t.co/puJSkorsmU
Pragmatic Profit
27 Feb 15 20:04:27
Getting prepped for a BIG week in tech, media, and cyber conferences...this is where analysts will update rev models for 2015 $CHKP $FB $QQQ
27 Feb 15 20:00:08
$AVGO and $GPOR posted earlier on $FB http://t.co/cRTW9cU0tk
IH News Desk
27 Feb 15 19:54:10
$PAL Reviews Updated Friday, February 27, 2015 10:10:59 PM $XLY $EEM $AMZN $FB http://t.co/TulBHvywXD
Rosner Stocks
27 Feb 15 19:54:10
$BIDU Stock Price Updated Friday, February 27, 2015 9:59:23 PM $FB $COH $XLF $CSIQ http://t.co/Xmd9nUGNdh
27 Feb 15 19:32:02
$MSFT $ORCL $FB $GOOGL: White House Proposes Consumer Privacy Bill of Rights: http://t.co/nJQwMvV7MV
27 Feb 15 19:27:09
Follow me into live stock chat! $GOOG $PCLN $TWTR $FB $AAPL $EBAY $GM $DUST $BABA http://t.co/l9JkTCtpHR http://t.co/kzaBbi9nUa
hani alsulami
27 Feb 15 19:18:49
@@MMeshalll اللي يميز أبو كرم خلقه العالي @MMeshalll $GOOGL $GOOG $FB $YHOO #النفط #تداول #اوبشن #options #الداو_جونز محلل بارع
27 Feb 15 19:08:28
@fazoinnorcal @Hemptres u r not a hero. U r a ZERO. Ur ego is too big for your own head. Cost u bags on $FB learn to be humble.
27 Feb 15 19:05:38
RT @MarketParse: @alexar Your tweet about $FB had a sentiment of 5 and was featured on Market Parse. http://t.co/5WyUW5R8WJ
Stock Hobbit
27 Feb 15 19:05:06
Logging in now to live stock chat http://t.co/ndv5bWOOj4 $GOOG $AAPL $FB $EBAY #options #stocks #daytrading http://t.co/IfvHoo4jcX
27 Feb 15 19:02:12
$TWTR $FB $LNKD $MA Friday Focus: Google Calls Go Wild ($GOOG $GOOGL) http://t.co/9Vr5tEZTbU
27 Feb 15 19:02:12
$TWTR $FB $LNKD $MA 2015 Stocks To Love and Hate: Update - Update from Option Millionaires - Stock Options Chatroo... http://t.co/b08WETDOGr
Corrine Shaw
27 Feb 15 19:00:53
@socialbakers The rise of mobile advertising! $FB #fbearnings
Timothy Sykes
27 Feb 15 19:00:36
This Was A Great Day http://t.co/60GSxlxdPt hope you get inspired $FB $TWTR $LNKD peeps, go $STUDY
27 Feb 15 18:59:12
@GuruOfGanja lol -- i don't even know where my phone is - went in to a haze after that $FB debacle -- like a 10K bag swing -- I'm distraught
27 Feb 15 18:56:31
RT @HedgeLy: Apple Sets Its Sights On Virtual Reality $AAPL $FB | http://t.co/AvvOYqXcyY http://t.co/otCmXbrsu4
27 Feb 15 18:53:02
Apple Sets Its Sights On Virtual Reality $AAPL $FB #wlst $FB http://t.co/iSjiotNzPN http://t.co/xOg2RI7N3w
27 Feb 15 18:52:47
Apple Sets Its Sights On Virtual Reality $AAPL $FB | http://t.co/Zj8lmD0Txj http://t.co/xcQToBw54D
|-| /-\
27 Feb 15 18:52:46
Apple Sets Its Sights On Virtual Reality $AAPL $FB | http://t.co/AvvOYqXcyY http://t.co/otCmXbrsu4
27 Feb 15 18:31:10
Catch a winner in LIVE CHAT $GOOG $PCLN $TWTR $FB $AAPL $EBAY $GM $DUST $BABA http://t.co/l9JkTCtpHR http://t.co/umgDd4G2SA
27 Feb 15 18:11:13
Eyeing for tomorrow: $XOM $FB $RSX $OI $EMR $XLB $XLI $PLD http://t.co/vEoZnfm66X http://t.co/wJj2aX6GVi
27 Feb 15 18:03:11
Eye of the tiger, baby! $GOOG $PCLN $TWTR $FB $AAPL $EBAY $GM $DUST $BABA http://t.co/JUFJoVvAWo http://t.co/Jzkjr9y2S6
Duncan R. Thomas
27 Feb 15 18:02:34
$SPY $QQQ $BABA $FB 2015 Stocks To Love and Hate: Update - Update from Option Millionaires - Stock Options Chatroo... http://t.co/CGLAf9HoKq
OM Daily Wisdom
27 Feb 15 18:01:20
$YHOO $AMZN $FB $V Friday Focus: Google Calls Go Wild ($GOOG $GOOGL) http://t.co/esgyEN49WI
Clayton R.
27 Feb 15 18:00:35
Here's a place where you can connect with successful daytraders http://t.co/G03lRs6t4J $GOOG $PCLN $TWTR $FB $AAPL $EBAY #stocks
The Duke
27 Feb 15 17:58:24
Lol $FB thinks sound updates will save it
Helen Ong
27 Feb 15 17:57:34
$FB: Facebook moves into suicide prevention - MarketWatch http://t.co/LoOt6Q5I5Z
Helen Ong
27 Feb 15 17:55:33
Growth-stock breakouts mean opportunity for speculators - MarketWatch $BLUE $MDVN $FB $GRUB http://t.co/URAbJmTD8Y
27 Feb 15 17:52:02
$FB: Wheelin' and Dealin' From a Truck: http://t.co/pGs72lMTz7
27 Feb 15 17:52:02
$FB $EBAY $YHOO $ZNGA: Shuttle Drivers at Five Tech Firms Vote For Teamsters Representation: http://t.co/Uie8u2j0Rt
Breaking News
27 Feb 15 17:51:02
$FB: Facebook Inc (NASDAQ:FB) Update: Facebooks Oculus a significant ...: http://t.co/S4lLCglPWP
27 Feb 15 17:45:12
Why I love my job.. http://t.co/cDwpwTfMg2 $SPY $FB $LNKD $TWTR
27 Feb 15 17:31:00
$FB still waiting for it to break out of the 70-82 range.
27 Feb 15 17:29:31
RT @SunriseTrader: $FB ugly bearish engulfer today. Stop in on the final rung of the ladder. Many looking for the breakout and down it went…
  +Follow July 30, 2013 4:50PM



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