logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Facebook Nears IPO Price as Stock Jumps Again

  +Follow July 30, 2013 4:50PM
Share:
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.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for FB
DOOBIEDOR
23 Nov 14 21:46:14
RT @Potstocks1: Top 4 Signs the Stock is a Scam http://t.co/ttcBMorB08 #stocks #trading $FB $GPRO $LNKD http://t.co/sCEk57I9zy
Pot-stocks.com
23 Nov 14 21:45:58
Top 4 Signs the Stock is a Scam http://t.co/ttcBMorB08 #stocks #trading $FB $GPRO $LNKD http://t.co/sCEk57I9zy
TheClosingBell
23 Nov 14 21:31:49
The Closing Bell is out! http://t.co/rQE911a6VP $EURUSD $GBPUSD $USDJPY $AUDUSD $SPY $TWTR $GPRO $YHOO $LNKD $FB $AAPL $BRD $CAT $WLT $LNKD
Alex
23 Nov 14 21:25:50
RT @IBDinvestors: Alibaba, Visa & Facebook are the 3 biggest U.S. IPOs ever. They also have huge profit margins. Coincidence? http://t.co/g…
TV_Trading Ideas
23 Nov 14 21:23:56
FB at the lower channel board $FB http://t.co/WG5zBRUz0G
Stockaholics
23 Nov 14 21:23:36
578% Gains On Penny Stocks in one month! Plus a New Pick Is Coming: http://t.co/2W3yKD2d5Q $FB $MDLZ $CELG
PennyStock Zone
23 Nov 14 21:22:57
Review of Timothy Sykes book: An American Hedge Fund: http://t.co/37mHH9cdhB $YHOO $NQ $FB $STUDY $BBRY $HEB $ABGB
Adam Fox
23 Nov 14 21:20:37
RT @JustinPulitzer: Weekend Review VIDEO 11/23: $SPY, $QQQ, $IWM, $AAPL, $BABA, $YHOO, $FB, $TWTR, $KMI, $LULU, $NFLX, $QCOM, $TSLA, $Z. ht…
PennyStock Zone
23 Nov 14 21:14:51
http://t.co/fWvPAwQOLk <<-- GOBBLE GOBBLE GOBBLE! 50% SALE ON PROFITLY for Thanksgiving!! #stocks #trading $VSR $FB $EYES $HURC
Russell Barbour
23 Nov 14 21:12:21
Super Trades Review Video: http://t.co/WQi6YMjptx #stocks #trading #nyse #nasdaq $FB $VSR $IBIO $NQ $HURC
A Green Cleveland
23 Nov 14 21:09:58
#Facebook has reached out to #YouTube's biggest stars to urge them to distribute their videos on Facebook. http://t.co/0Cgn7Z9Rfq $FB $GO
Chet Stedman
23 Nov 14 20:53:08
Spot on. The Onion is a great future predictor of stock performance as well $FB http://t.co/MWLpGSLw22
sahil
23 Nov 14 20:50:53
The end of QE, but that doesn�t mean the end of profits. http://t.co/T1lTk9Tola $vxx $sm $jcp $nflx $dpz $fb $twc
Mike Harding
23 Nov 14 20:48:26
I have never had a pleasant or positive experience in or around $FB. Am I the only person in the world with this experience?
Adam
23 Nov 14 20:48:00
@traderstewie been watching your videos and doing my hw... Is that a bullish wedge I see trending in $fb ? Macd coming around as well
PennyStock Zone
23 Nov 14 20:46:56
http://t.co/fnBiu3MA1X <-- Awesome trading DVD featuring 3 profitly gurus! #stocks #trading #nyse $FB $TWTR $VSR $MAC $VZ $GS
Maitri Shah
23 Nov 14 20:45:25
The future is here. "@Recode: Want to build drones for Facebook? http://t.co/SoAKNZtcOo by @KurtWagner8 http://t.co/YeGnlPmiD7” $FB
latt
23 Nov 14 20:42:02
DONE FOR THE NIGHT HERE IS MY WATCH LIST >>>>>http://t.co/yh2xEVdvJ1 $AAPL $FB $TWTR $BABA $STUDY
BUZZ Just-In
23 Nov 14 20:38:08
Save 75% by finding the cheapest broker to trade Social Media Stocks http://t.co/uhCJC3Sksd $TWTR $LNKD $FB $GRPN $ZNGA #spreadbetting #cfd
msinvestor
23 Nov 14 20:29:25
@peach8824 @jack @dickc in terms of Value, $TWTR already is bigger than $FB & "Price is what u pay, value is what you get." - Buffet
PennyStock Zone
23 Nov 14 20:26:02
http://t.co/nGpJsAI10D <-- Lifetime membership for amazing stock alerts on $97! #stocks #trading #nyse #pennystocks $FB $TWTR
BUZZ Just-In
23 Nov 14 20:23:08
Why access a ticker when you could acesss a group of tickers- Social Media Stocks http://t.co/lHJArhR8df $TWTR $LNKD $FB $GRPN $ZNGA
Erwin b
23 Nov 14 20:19:19
RT @timothysykes: 5 Surprising Millionaire Facts http://t.co/LrL1oRZV95 get educated $FB $TWTR $LNKD
Stockaholics
23 Nov 14 20:19:05
578% Gains On Penny Stocks in one month! Plus a New Pick Is Coming: http://t.co/2W3yKD2d5Q $F $SIRI $FB
∞E∞⚡
23 Nov 14 20:16:23
RT @GoogleFacts: You can poke whoever you want on Facebook, except Mark Zuckerberg. $FB
Wanda
23 Nov 14 20:14:46
RT @GoogleFacts: More than a handful of people have been murdered for unfriending someone on Facebook. $FB
∞E∞⚡
23 Nov 14 20:10:16
RT @GoogleFacts: Facebook has now been down 10 minutes and lost more than $220,000 in advertising revenue. $FB
DEBRA LEE
23 Nov 14 20:04:50
RT @JustinPulitzer: Weekend Review VIDEO 11/23: $SPY, $QQQ, $IWM, $AAPL, $BABA, $YHOO, $FB, $TWTR, $KMI, $LULU, $NFLX, $QCOM, $TSLA, $Z. ht…
PennyStock Zone
23 Nov 14 19:59:45
http://t.co/fVzJIg8XPj <-- Last Year this millionaire trader made $163,000 during Thanksgiving week! #stocks #trading $FB
Hotpage Business
23 Nov 14 19:58:10
#SupremeCourt case tests the limits of free speech on #Facebook and Social Media - $FB $TWTR http://t.co/S1HfBR3SH4 http://t.co/tCsVbOR4Hh
Hotpage
23 Nov 14 19:58:10
#SupremeCourt case tests the limits of free speech on #Facebook and Social Media - $FB $TWTR http://t.co/GpFHsmlSLx http://t.co/d0VuwucCZU
Sir Micho Sexy
23 Nov 14 19:56:56
RT @GoogleFacts: Mark Zuckerberg, the CEO of Facebook, called his first few thousand users as "dumb f****" for trusting him with their pers…
Sir Micho Sexy
23 Nov 14 19:55:57
RT @GoogleFacts: More than a handful of people have been murdered for unfriending someone on Facebook. $FB
Jake Catskill
23 Nov 14 19:43:43
RT @JustinPulitzer: Weekend Review VIDEO 11/23: $SPY, $QQQ, $IWM, $AAPL, $BABA, $YHOO, $FB, $TWTR, $KMI, $LULU, $NFLX, $QCOM, $TSLA, $Z. ht…
Justin Pulitzer
23 Nov 14 19:43:23
Weekend Review VIDEO 11/23: $SPY, $QQQ, $IWM, $AAPL, $BABA, $YHOO, $FB, $TWTR, $KMI, $LULU, $NFLX, $QCOM, $TSLA, $Z. http://t.co/ZD4QP2Qner
Caldwell
23 Nov 14 19:42:33
RT @GoogleFacts: More than a handful of people have been murdered for unfriending someone on Facebook. $FB
PennyStock Zone
23 Nov 14 19:39:47
Awesome trading DVD featuring 3 profitly gurus! http://t.co/fnBiu3MA1X #stocks #trading #nyse $FB $TWTR $VSR
$FB Stock Watch
23 Nov 14 19:39:33
Facebook Inc. (FB) Video Advertisement On The Rise http://t.co/02rdotUYBL $FB
Pot-stocks.com
23 Nov 14 19:39:29
Head over to our forums to talk Pot Stocks! http://t.co/CsEGQ7hU8U $FB $TWTR $AFAI $GBLX $ERBB #Greenrush #market http://t.co/AYvbPEnwwY
Karl
23 Nov 14 19:38:35
RT @IBDinvestors: Alibaba and Facebook aren't just huge, they also generate massive earnings per sales http://t.co/JccYvQEcKr $BABA $FB $AA…
Aryan Oberoi
23 Nov 14 19:33:16
Best Investments of the year: $AAPL $FB $SPLK $BABA $BIDU $TSLA $GS
Ravi Romo
23 Nov 14 19:30:00
Drone flights face FAA hit. http://t.co/Mqb32AS412 via @WSJ $AMZN $GOOGL $FB $AAPL $BABA
Dan
23 Nov 14 19:15:47
$FB high open interest range is 70.00 to 80.00 for option expiration 11/22/2014. http://t.co/GIgQFm9ktc
Barfy
23 Nov 14 19:14:23
RT @GoogleFacts: More than a handful of people have been murdered for unfriending someone on Facebook. $FB
Steve Virtue
23 Nov 14 19:12:51
RT @2morrowknight: Facebook users most likely to visit multiple times a day http://t.co/eZnJsOvJcd $FB #socialmedia RT @globalwebindex http…
Kandice Ferrell
23 Nov 14 19:12:26
RT @2morrowknight: Facebook users most likely to visit multiple times a day http://t.co/eZnJsOvJcd $FB #socialmedia RT @globalwebindex http…
Dan
23 Nov 14 19:08:31
$FB Max Pain = 74.50. Maturity = 11/22/2014. Previous close = 73.75. http://t.co/4Wqp4uV2wx
BUZZ Just-In
23 Nov 14 19:08:05
You may be paying much higher spreads for Social Media Stocks http://t.co/uhCJC3Sksd $TWTR $LNKD $FB $GRPN $ZNGA #spreadbetting #cfd
Timothy Sykes
23 Nov 14 19:00:33
5 Surprising Millionaire Facts http://t.co/LrL1oRZV95 get educated $FB $TWTR $LNKD
Iwona Senator
23 Nov 14 18:52:00
RT @IBDinvestors: Alibaba and Facebook aren't just huge, they also generate massive earnings per sales http://t.co/JccYvQEcKr $BABA $FB $AA…
				
				
  +Follow July 30, 2013 4:50PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.