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 and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for FB
Gilly
15 Sep 14 17:30:59
RT @pennies4stocks: $TSLA $NFLX $LNKD $CMG $GOOGL $PCLN $YELP $FB $TWTR peeps think they are down too much thats when shit gets real ugly
Flash Rabbit
15 Sep 14 17:28:59
RT @StockTwits: The biggest momentum stocks took a massive beating today $TSLA ‒9% $LNKD ‒8% $TWTR ‒5% $FB ‒4% $NFLX ‒4% → http://t.co/bF…
Coherent Variance
15 Sep 14 17:28:51
This #AlibabaIPO is going to risk turning into $FB debacle if they keep jacking up the price and enlarging the deal. Not good. $BABA $YHOO
12Stocks.com Tech
15 Sep 14 17:25:07
Alibaba ups IPO share price to $66-$68 range.. http://t.co/R3Eaijeant $FB #tech #stocks
12Stocks.com Tech
15 Sep 14 17:24:51
Today's Thorns, Roses, and All Time Highs..... http://t.co/yV5Co5xcMk $FB #tech #stocks
12Stocks.com Tech
15 Sep 14 17:24:34
Tencent, Gaming Hold Clues To Facebook WhatsApp Bet.. http://t.co/VZAyGIgqoK $FB #tech #stocks
12Stocks.com Tech
15 Sep 14 17:24:18
Alibaba IPO analysis: To buy or not to buy.. http://t.co/4jqMSiL1MM $FB #tech #stocks
12Stocks.com Tech
15 Sep 14 17:24:02
Cramer: Keep eye on APPL, FB, & more.. http://t.co/utQTtRUBBW $FB #tech #stocks
12Stocks.com Tech
15 Sep 14 17:23:45
Cramer: Your move ahead of Alibaba.. http://t.co/MWBZgZpM1S $FB #tech #stocks
12Stocks.com Tech
15 Sep 14 17:23:29
Yes campaign winning social media battle in Scotland, says Facebook.. http://t.co/6IITEkkZYV $FB #tech #stocks
Craig Passman
15 Sep 14 17:23:25
@jimcramer $fb should buy $angi at these levels. Augment 'likes and posts' of your personal universe with same for your consumer universe.
12Stocks.com Tech
15 Sep 14 17:23:12
Tesla Dives As Musk Doubts Stock Price.. http://t.co/peyQUiwDv3 $FB #tech #stocks
OTPicks.com
15 Sep 14 17:20:51
http://t.co/hjgLwIcNgz danrocks: $EFA Buzz $PBR $HAL $S $FB $XLY: danrocks http://t.co/le7hGaTMvI http://t.co/hjgLwIcNgz
OTPicks.com
15 Sep 14 17:20:49
http://t.co/QkCFZ8H3V8 danrocks: $EFA Buzz $PBR $HAL $S $FB $XLY: danrocks http://t.co/6a8glW0GE8 http://t.co/QkCFZ8H3V8
WallStreetSavages!
15 Sep 14 17:17:13
RT @carrascoaa: Best Buy is using $NTEK's #4K channel Ultraflix to showcase #4K in stores: https://t.co/uWsXpza31b $BBY $SNE $FB $TWTR $NFLX
Alisa Strategy®
15 Sep 14 17:16:26
#FTR1 $FB FACEBOOK INC. PRESION BAJISTA ACTIVA SOPORTE A VIGILAR PARA COMPRAS $72.96 Y SI LO ROMPE SOPORTE $65.56 BULL TARGET $80.39
martinwolf
15 Sep 14 17:16:16
$BABA a record IPO. Not like $FB w/ too many shares. If no Fed surprise look 4 day 1 pop—at 68 should be more http://t.co/8bkbQcehjw
Frederikke Bjerg
15 Sep 14 17:15:36
RT @CNNMoneyInvest: It's not just $TSLA. Social media stocks are plunging today... $FB $LNKD $YLP $TWTR http://t.co/VF7JYONo5Q http://t.co/…
MoneyMakingStocks
15 Sep 14 17:14:15
RT @pennies4stocks: $TSLA $NFLX $LNKD $CMG $GOOGL $PCLN $YELP $FB $TWTR peeps think they are down too much thats when shit gets real ugly
Lagos Capital
15 Sep 14 17:12:52
RT @StockTwits: The biggest momentum stocks took a massive beating today $TSLA ‒9% $LNKD ‒8% $TWTR ‒5% $FB ‒4% $NFLX ‒4% → http://t.co/bF…
Trent Blair
15 Sep 14 17:12:35
RT @scalpthatstock: Breakdowns galore today keep on eye on these ones for rebounds Tuesday http://t.co/v1FJcfRrBQ $FB $TWTR $TSLA $MU $OREX…
Peter Pan
15 Sep 14 17:12:10
$TSLA $NFLX $LNKD $CMG $GOOGL $PCLN $YELP $FB $TWTR peeps think they are down too much thats when shit gets real ugly
Smaulgld
15 Sep 14 17:11:47
RT @StockTwits: The biggest momentum stocks took a massive beating today $TSLA ‒9% $LNKD ‒8% $TWTR ‒5% $FB ‒4% $NFLX ‒4% → http://t.co/bF…
Kaleb Moon
15 Sep 14 17:09:58
@jimcramer buy more $FB or diversify tomorrow ?
theoptiondon
15 Sep 14 17:08:49
MARKET WRAP 9/15/14 http://t.co/jMmZXVQByC $AAPL $AMZN $TWTR $PCLN $BIDU $GOOGL $TSLA $FB $NFLX $LNKD $Z $YHOO $DDD $SPY $QQQ $DIA $UUP $GLD
Andrew Loyola
15 Sep 14 17:08:23
RT @hunterwalk: .@openfolioapp team has cool vision for sharing personal stock portfolios. Here's my verified holdings of $TWTR $FB https:/…
Openfolio
15 Sep 14 17:07:49
RT @hunterwalk: .@openfolioapp team has cool vision for sharing personal stock portfolios. Here's my verified holdings of $TWTR $FB https:/…
Russell Barbour
15 Sep 14 17:06:12
Wow Super_trades has made over $2 M ILLION in the last year!! check out his chart http://t.co/EfuNMUT9XP $VIMC $LIVE $NQ $HURC $FB
John Siracusa
15 Sep 14 17:06:08
RT @StockTwits: The biggest momentum stocks took a massive beating today $TSLA ‒9% $LNKD ‒8% $TWTR ‒5% $FB ‒4% $NFLX ‒4% → http://t.co/bF…
PennyStock Zone
15 Sep 14 17:00:49
Check out how im making HUNDREDS of $$$ every month with the profit.ly affiliate program! http://t.co/5GZewWhwc3 $zpin $hurc $FB $live
Hart Lambur
15 Sep 14 17:00:24
RT @hunterwalk: .@openfolioapp team has cool vision for sharing personal stock portfolios. Here's my verified holdings of $TWTR $FB https:/…
Patrick
15 Sep 14 17:00:12
#TOPTICKERTWEETS $AAPL $TSLA $YHOO $SPY $AVNR $FB $TWTR $DIA $FXI $DXD #quantheta
Colin Macleod
15 Sep 14 16:58:54
Breakdowns galore today keep on eye on these ones for rebounds Tuesday http://t.co/v1FJcfRrBQ $FB $TWTR $TSLA $MU $OREX $JBLU $MGM GTAT
Pot-stocks.com
15 Sep 14 16:50:15
Follow us on Facebook! $fb #stocks #trading #selfie #hashbrowns https://t.co/b8en5PVXXR
Jeremy Baksht
15 Sep 14 16:47:56
RT @StockTwits: The biggest momentum stocks took a massive beating today $TSLA ‒9% $LNKD ‒8% $TWTR ‒5% $FB ‒4% $NFLX ‒4% → http://t.co/bF…
Dream Funded Team
15 Sep 14 16:45:58
RT @hunterwalk: .@openfolioapp team has cool vision for sharing personal stock portfolios. Here's my verified holdings of $TWTR $FB https:/…
BUZZ Just-In
15 Sep 14 16:45:16
Why access a ticker when you could acesss a group of tickers- Social Media Stocks http://t.co/ajElRTb2Qc $TWTR $LNKD $FB $GRPN $ZNGA
carrascoaa
15 Sep 14 16:44:56
Best Buy is using $NTEK's #4K channel Ultraflix to showcase #4K in stores: https://t.co/uWsXpza31b $BBY $SNE $FB $TWTR $NFLX
Media Sentiment
15 Sep 14 16:41:51
$FB received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 439
RB Tech Social
15 Sep 14 16:40:03
Largest Value Trades $DHI JAN '16 #Calls SLD $2.0M $TWTR JAN '15 Calls BOT $1.9M $FB JAN '15 Calls BOT $1.8M http://t.co/5ACRZQrmsL
Keef
15 Sep 14 16:39:56
RT @Nirav777: Weekend's "Facebook- Short $FB 76.51-75.06 Target is 71.57, 69.72, 67.73 & loopy into 64.37"// starting to work http://t.co/b…
RB Trader
15 Sep 14 16:39:48
Largest Value Trades (3-5) $DHI JAN '16 #Calls SLD $2.0M $TWTR JAN '15 Calls BOT $1.9M $FB JAN '15 Calls BOT $1.8M http://t.co/jNhmLZNVHf
CandidBanter
15 Sep 14 16:35:54
$FB $TSLA $NFLX all beat down today-appears due for a bounce at these levels. Lot of damage-may only be rally in d/trend. #stocks #trading
Harry Samtani
15 Sep 14 16:32:31
RT @StockTwits: The biggest momentum stocks took a massive beating today $TSLA ‒9% $LNKD ‒8% $TWTR ‒5% $FB ‒4% $NFLX ‒4% → http://t.co/bF…
12Stocks.com Tech
15 Sep 14 16:32:24
#Tech #stocks $FB Facebook Daily:-3.74% Weekly:-4.25% YTD:36.47% Trend:13 / 100 http://t.co/i7UDGHezkd
Pablo Roa
15 Sep 14 16:32:05
Tencent, Gaming Hold Clues To Facebook WhatsApp Bet http://t.co/loyE3h6yqN #IBDNews via @IBDinvestors $FB $TCEHY $BABA $JD
The LincolnList
15 Sep 14 16:30:36
Here are a few stock ideas for tomorrow $AVNR $RCPT $SINA $FB http://t.co/Uw5t3h2UmE
natetrades
15 Sep 14 16:29:43
$fb more of the same…check out the red volume candles…brutal http://t.co/om9r7bgPLO
RB Tech Social
15 Sep 14 16:27:54
Weekly Momentum Options Scan $AAPL $105 Calls BOT 1,948 X 5 DTE $FB $77.5 Calls SLD 6,058 X 5 DTE Email for a demo http://t.co/NME8JYhrYN
RB Trader
15 Sep 14 16:27:39
Weekly Momentum Options Scan $AAPL $105 Calls BOT 1,948 X 5 DTE $FB $77.5 Calls SLD 6,058 X 5 DTE Email for a demo http://t.co/tBJf3q7Tx6
				
				
  +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.