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Facebook Nears IPO Price as Stock Jumps Again

  +Follow July 30, 2013 4:50PM
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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for FB
The Stock Professor
30 Jul 15 02:37:41
'Fast Money' Recap: Facebook Shares Not Liked After Earnings: [at TheStreet] - The tradin... http://t.co/FIDS2WDaB3 $FB $TWTR $LNKD $BAC
Cameron Day
30 Jul 15 02:37:20
RT @CNNMoney: Facebook is now the world's most-used tech product. @lisahopeking on $FB earnings: http://t.co/aDZ5uNpU8v http://t.co/HomCXZn…
zooey m
30 Jul 15 02:35:38
mediasentiment: $FB received a new alert. Find out why at http://t.co/6A03PDuOjo #stocks #daytrading #trading #m… http://t.co/X3n8d6GPom
binaryoptionsocial
30 Jul 15 02:34:57
ALDR Alder Biopharmaceuticals Inc. Exchange http://t.co/F0nv3aBFWm $ALDR $GILD $MBHC $FB #ALDR #stockmarket #pe… http://t.co/Csk7miZSkI
Media Sentiment
30 Jul 15 02:34:49
$FB received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 13
Miningfinance
30 Jul 15 02:34:22
RT @Sourcingstocks: Join http://t.co/7HuK9APVun to get all your #NASDAQ and #NYSE stock updates - #sourcingstocks, $AMZN, $AAPL, $GPRO, $FB…
TopFiveTraders
30 Jul 15 02:33:57
RT @Sourcingstocks: Join http://t.co/7HuK9APVun to get all your #NASDAQ and #NYSE stock updates - #sourcingstocks, $AMZN, $AAPL, $GPRO, $FB…
NASDAQStocks
30 Jul 15 02:33:36
RT @Sourcingstocks: Join http://t.co/7HuK9APVun to get all your #NASDAQ and #NYSE stock updates - #sourcingstocks, $AMZN, $AAPL, $GPRO, $FB…
The Fly
30 Jul 15 02:32:43
Facebook price target raised to $146 from $120 at Piper Jaffray $FB: Full Story http://t.co/ojMcRwtXBT
Stock_Tracker
30 Jul 15 02:32:23
ALDR Alder Biopharmaceuticals Inc. Exchange http://t.co/8B4WpWjOhh $ALDR $GILD $MBHC $FB #ALDR #stockmarket #pennystocks
smtrader StockTrader
30 Jul 15 02:31:49
$FB OI chart as of the close on 7/29/15. Watch for price to possibly ping-pong between 95-100 http://t.co/KdNnmPYqh6
FinBUZZ Just-IN
30 Jul 15 02:30:38
Transaction costs for trading $FB with brokers, min: 0.061% max: 0.305% difference: 4.0x http://t.co/a2JAw5tvao #spreadbetting
Тatyana Tolmacheva
30 Jul 15 02:27:01
RT @CNBC: Just how many users did Facebook and Twitter gain in the last quarter? • $FB $TWTR http://t.co/TgaU1FZB9B
Sandra Smith
30 Jul 15 02:26:32
#facebook shares set to open sharply lower post earnings. tune into @FoxBusinessAM $FB
llynnk
30 Jul 15 02:26:14
RT @CNNMoney: Facebook is now the world's most-used tech product. @lisahopeking on $FB earnings: http://t.co/aDZ5uNpU8v http://t.co/HomCXZn…
Brandon
30 Jul 15 02:24:59
Crazy stat regarding time spent on $FB. Almost a billion people spending 46 minutes each and every day. http://t.co/XCx7duh9WX
Mythical king888
30 Jul 15 02:23:59
RT @CNNMoney: Facebook is now the world's most-used tech product. @lisahopeking on $FB earnings: http://t.co/aDZ5uNpU8v http://t.co/HomCXZn…
WLST.com
30 Jul 15 02:23:28
Facebook ordered to allow fake user names in Germany $FB #Facebook http://t.co/S6DviHMrfm http://t.co/6JDap2TmrB http://t.co/q5V4lGYexQ
#SocialMedia NC
30 Jul 15 02:23:25
Facebook ordered to allow fake user names in Germany - The Verge http://t.co/khULDJJusn #Facebook • $FB http://t.co/5tUWFItAqT
Zyzz Alba
30 Jul 15 02:23:17
$FB call buyers for ER https://t.co/ujRHDWTfBL @GuruOfGanja @Jersey_Drew @unclepennybag @fazoinnorcal @PharmDHeat @WolfOfPennyLane @clathem
Forex  News Insider.
30 Jul 15 02:22:39
RT Facebook (FB) Mark Elliot Zuckerberg on Q2 2015 Results - Earnings Call Transcript http://t.co/n84GowRR8B $FB
Hidalberto
30 Jul 15 02:22:03
RT @CNBCnow: EARNINGS ALERT: Facebook Q2 EPS $0.50 Adj. vs. $0.47 Est.; Q2 Revs. $4.04B vs. $3.99B Est. • $FB QUOTE: http://t.co/wAGfwlmHYp
FinBUZZ Just-IN
30 Jul 15 02:20:37
Save 75% by finding the cheapest broker to trade US Tech Giants http://t.co/F3popAHoym $AAPL $GOOGL $MSFT $FB $TWTR #spreadbetting #cfd
binaryoptionsocial
30 Jul 15 02:19:26
$FB received a new alert. Find out why at http://t.co/rRtKVAtOMv #stocks #daytrading #trading #mkt #NYSE #NASDA… http://t.co/Csk7miZSkI
Sourcingstocks.com
30 Jul 15 02:19:20
Join http://t.co/7HuK9APVun to get all your #NASDAQ and #NYSE stock updates - #sourcingstocks, $AMZN, $AAPL, $GPRO, $FB, $SCTY
bored2tears
30 Jul 15 02:19:05
Employee exodus: #Twitter's Facebook fixation makes it an unhappy place to work. http://t.co/wfY9Junt7j $FB $TWTR #SocialMedia #stocks
iZoneZw
30 Jul 15 02:19:02
RT @ValaAfshar: Facebook's ad revs Dec.'11: Desktop: 100% Mobile: 0% Facebook's ad revs June '15: Desktop: 24% Mobile: 76% —@CNBCSocial…
~twino~
30 Jul 15 02:16:50
RT @ValaAfshar: 11 years ago, someone named Mark Zuckerberg appeared on @CNBC to discuss a social network. $FB https://t.co/R0Eer8E6XX
PamphletShop
30 Jul 15 02:10:40
$TWTR Twitter Inc http://t.co/UKZ3MRGmpH #Greferendum $GILD $RAX $AMZN $GOOGL $C $SPY $TLT $HYG $GLD $FB $TWTR $GOOG #IranDeal #PlutoFlyby
FinBUZZ Just-IN
30 Jul 15 02:10:37
Track curated news and tweets for multiple tickers- Social Media Stocks http://t.co/0lDjsEei8y $FB $LNKD $TWTR $GRPN $ZNGA
PamphletShop
30 Jul 15 02:10:14
$TWTR Twitter Inc http://t.co/UKZ3MRGmpH #Greferendum #stock $vix $tvix $uvxy #trading #cac #dax #ftse #asia #china $vxx $dia $aapl $fb
Media Sentiment
30 Jul 15 02:09:51
$FB received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 8
Parseq
30 Jul 15 02:09:05
RT @CNNMoney: Facebook is now the world's most-used tech product. @lisahopeking on $FB earnings: http://t.co/aDZ5uNpU8v http://t.co/HomCXZn…
TalkMarkets Recap
30 Jul 15 02:09:01
Solid Guesses - Financial Review $SPX $CVX $NOK $TRI $AMZN $INTC $MSFT $MU $WFM $FB $TWTR http://t.co/K38UvfzAA2
LynxBe
30 Jul 15 02:08:49
RT @YouriSleutel: Meer dan 50% van de omzet van #Facebook komt van buiten de VS. Ook $FB heeft last van de sterke dollar. Lees meer https:/…
Aidan Warner
30 Jul 15 02:08:43
RT @CNNMoney: Facebook is now the world's most-used tech product. @lisahopeking on $FB earnings: http://t.co/aDZ5uNpU8v http://t.co/HomCXZn…
Jeff B
30 Jul 15 02:08:20
@_JackMohr $FB what more can you ask for if you said 2 years ago it would be this good I'd bet against you. Damn well run co
PamphletShop
30 Jul 15 02:08:13
$TWTR Twitter Inc http://t.co/UKZ3MRGmpH #Greferendum $SPY $AAPL $FB $NFLX $TSLA $BIDU $AMZN $GOOGL $TWTR $LNKD $GS $FBEC $TSOI $PVSP $HCT
Youri Sleutel
30 Jul 15 02:07:41
Meer dan 50% van de omzet van #Facebook komt van buiten de VS. Ook $FB heeft last van de sterke dollar. Lees meer https://t.co/v3EPQdt99Q
Cholista Libertarian
30 Jul 15 02:06:44
Qué diferencia entre $TWTR y $FB ....
MichelRog
30 Jul 15 02:06:20
RT @CNNMoney: Facebook is now the world's most-used tech product. @lisahopeking on $FB earnings: http://t.co/aDZ5uNpU8v http://t.co/HomCXZn…
Leonid Alexandrov
30 Jul 15 02:05:33
RT @CNNMoney: Facebook is now the world's most-used tech product. @lisahopeking on $FB earnings: http://t.co/aDZ5uNpU8v http://t.co/HomCXZn…
angella  Augello
30 Jul 15 02:04:59
I think trim & trail a little $FB here in $90s. My hate stream has gone dead silent.
WLST.com
30 Jul 15 02:04:03
Facebook Sees Large Decrease in Short Interest (FB) - TickerLens $FB #FB http://t.co/S6DviHMrfm http://t.co/2dY9Gg2jJg
WLST.com
30 Jul 15 02:03:59
Facebook Sees Significant Drop in Short Interest (FB) - TickerLens $FB #FB http://t.co/S6DviHMrfm http://t.co/9jkNKkzCXk
TickerLens Facebook
30 Jul 15 02:03:54
Facebook Sees Large Decrease in Short Interest (FB) http://t.co/EfbmGaoybK $FB
TickerLens Facebook
30 Jul 15 02:03:53
Facebook Sees Significant Drop in Short Interest (FB) http://t.co/ZzGqxgWVPL $FB
Ian Nelson
30 Jul 15 02:03:43
@jimcramer @GoranPetric everyone would like it if it goes down hard...that's easy...do you still like it around 94-95? $FB
StockEarnings.com
30 Jul 15 02:03:00
$FB Earnings result is already out. Check out historical price reaction after ER. http://t.co/2iK82W27co
Kapono Peiper
30 Jul 15 02:02:49
RT @jimcramer: No, I don't. I am talking semis. If $FB goes down hard I like it... https://t.co/A7OruWXnY8
				
				
  +Follow July 30, 2013 4:50PM
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