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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.


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Results for FB
BP
28 Nov 14 07:57:46
imho $fb after its basing 72 to 80 for a while, will blast to 120 giving it a >300 billion valuation. insanity becomes more insane lol
Lauren Holmes
28 Nov 14 07:56:58
$FB is going down and hedge funds may be betting it will not perform better than the overall industry. Check here http://t.co/VrsGMCgPOC
PennyStocker
28 Nov 14 07:52:27
$ELED is breaking out of bullish flag pattern today. Could be a big couple days here. $NOK $INTC $FB $BBY
Investimonials.com
28 Nov 14 07:52:23
RT @timothysykes: AWESOME http://t.co/fljCJNI6S2 student trade 10:50AM puttabitt:All out $VGGL at 3.98, nice 75c a share profit!! GTE INSPI…
Profit.ly
28 Nov 14 07:52:13
RT @timothysykes: AWESOME http://t.co/fljCJNI6S2 student trade 10:50AM puttabitt:All out $VGGL at 3.98, nice 75c a share profit!! GTE INSPI…
Timothy Sykes
28 Nov 14 07:51:19
AWESOME http://t.co/fljCJNI6S2 student trade 10:50AM puttabitt:All out $VGGL at 3.98, nice 75c a share profit!! GTE INSPIRED $FB $TWTR $LNKD
®مستشارك المالي®
28 Nov 14 07:48:23
#NYS #DOW_JONES $AAPL $GOOG $FB $AMZN $ $AMZN 342.50 call op:18 cent التداول اليوم الى الساعه ٩ فقط من يجازف معي بهذا العقد:)
BUZZ Just-In
28 Nov 14 07:45:44
Don't ignore transactions costs- they add up- Social Media Stocks http://t.co/uhCJC3Sksd $TWTR $LNKD $FB $GRPN $ZNGA #spreadbetting #cfd
OptionsGenius
28 Nov 14 07:44:32
@Weeklyoptions $FB 77 P I said its going below 77 today.
Bull Logic
28 Nov 14 07:43:56
$FB saving face
Wallstreetpro
28 Nov 14 07:42:07
$FB going to break out to new highs in Dec. Grabbed some here at 77.37
ZCorum
28 Nov 14 07:42:04
RT @TedatACA: Content neutrality? Facebook to filter unpaid promo material that businesses have posted as status updates. $FB #FCC http://t…
Elly
28 Nov 14 07:40:49
$STTK announced the launch of its new RadioLoyalty mobile App for #Andoid devices $SPY $FB $TWTR Video adverts-
Auto Binary option
28 Nov 14 07:38:50
RT @timothysykes: http://t.co/LOFudT9S4m Shorting a blatant pump using http://t.co/VW41AWcIVX just another typical day, learn it $FB $TWTR
natetrades
28 Nov 14 07:38:32
$FB chart https://t.co/5e2oHbOfTS via http://t.co/jIQ0tYKJWo
هاني السالم
28 Nov 14 07:38:24
RT @s_s_o0: #NYS #DOW_JONES $AAPL $GOOG $FB $AMZN $PCLN ارتفاعات للداو جونز مع الأفتتاح بأكثر من ٥٠+ نقطه
Maleah
28 Nov 14 07:37:48
http://t.co/K02Iv1wZD1 <-- How To Make Millions Presale 70% Off! ALL proceeds DONATED TO CHARITY! #stocks $FB http://t.co/Xqi3e0KYKF
Stock Wire
28 Nov 14 07:35:45
Eleventh-Hour Speculators Roll the Dice On Facebook Inc (FB) $FB http://t.co/oyC40TYCg5
Media Sentiment
28 Nov 14 07:35:02
$FB received a new alert. Find out why at http://t.co/5lwmDm2SCs #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 141
Edouard Soutzo
28 Nov 14 07:33:51
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Elly
28 Nov 14 07:33:30
$STTK Video adverts are becoming a thing-Like what $TWTR has been trying to do-and $FB does do-video in-stream ad insertion
®مستشارك المالي®
28 Nov 14 07:32:46
#NYS #DOW_JONES $AAPL $GOOG $FB $AMZN $PCLN ارتفاعات للداو جونز مع الأفتتاح بأكثر من ٥٠+ نقطه
Timothy Sykes
28 Nov 14 07:31:01
http://t.co/LOFudT9S4m Shorting a blatant pump using http://t.co/VW41AWcIVX just another typical day, learn it $FB $TWTR
BUZZ Just-In
28 Nov 14 07:30:44
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WeinsteinTST
28 Nov 14 07:27:11
Zynga's Shareholders Wait for Gain Is Ending http://t.co/jSem3P4nK7 @TheStreet $ZNGA $FB $MSFT $BABA @robertweinstein
PennyStock Zone
28 Nov 14 07:26:34
DrMatt30 is a Super_trades student! $71,000 in ONE TRADE!! Congrats!! http://t.co/r4xCGBsQZz #stocks #stocktips $FB $TWTR $CNET
FinSentS NASDAQ
28 Nov 14 07:26:26
$FB:US New Facebook Rules Will Sting Entrepreneurs #FACEBOOK INC http://t.co/Iz8mAt8kx0 #NASDAQ
PennyStock Zone
28 Nov 14 07:21:27
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Trax Trades
28 Nov 14 07:20:49
RT @DeidreZune: Collapsing oil prices, a huge windfall for ALL--except energy producers Investors flee energy INTO $AAPL $FB $GPRO $AAL $U…
SmallCaps
28 Nov 14 07:19:01
RT @Maleah333: http://t.co/K02Iv1wZD1 <-- How To Make Millions Presale 70% Off! ALL proceeds DONATED TO CHARITY! #stocks $FB http://t.co/8…
Ted Hearn
28 Nov 14 07:13:59
Content neutrality? Facebook to filter unpaid promo material that businesses have posted as status updates. $FB #FCC http://t.co/Q4T3LyTKSl
Erin Snow
28 Nov 14 07:13:25
@MsTriciaD @grassosteve Adding to $GILD $INCY $HBI $FB $PPC. Confident about $GILD & $INCY
FinSentS SP500
28 Nov 14 07:06:52
$FB:US New Facebook Rules Will Sting Entrepreneurs #FACEBOOK INC http://t.co/WDwXeJzhdt #SP500
Elly
28 Nov 14 07:04:59
$AAPL Stop screwing Investors #BlackFriday @amazon Fire and $BBRY #Blackberry passport- 'RED' $FB $SPY $DJIA
Robert Weinstein
28 Nov 14 07:03:55
Zynga's Shareholders Wait for Gain Is Nearing an End http://t.co/Z8XmmWeDF8 @TheStreet $ZNGA $FB $MSFT $BABA
Stock Wire
28 Nov 14 07:03:51
Facebook Inc (NASDAQ:FB) to Implement New Privacy Changes Starting 2015 $FB http://t.co/0SyEJUeMAW
The Stock Professor
28 Nov 14 07:02:25
$FB $TWTR $AAPL $IBM Britain's FTSE hits one-week low as energy stocks slump http://t.co/u5dMB76ojr
Scott Redler
28 Nov 14 07:01:49
$fb & $twtr helped this week. $FB woke up and gave two nice days. Then $twtr woke up and did a bit of the same. Igniting bars help
Elly
28 Nov 14 07:00:29
$AAPL The Biggest company on the Market and they give their customers a 'Gift card' for #Blackfriday Boycott the stupid #iPhone $SPY $FB
Quantheta
28 Nov 14 07:00:03
#TOPTICKERTWEETS $O $SPY $EC $USO $AAPL $QQQ $CLF $TWTR $DIA $FB #quantheta #sentiquant
Haj
28 Nov 14 06:59:36
$FB added 77.40
PennyStock Zone
28 Nov 14 06:58:15
http://t.co/nGpJsAI10D <-- Turn $100 into $1000, $10000 or more in 30 days! #stocks #trading #nyse #pennystocks $FB $TWTR
SmallCaps
28 Nov 14 06:57:54
http://t.co/t9v4IO2vow <<-- Tandem Trader dvd video #stocks #trading $FB $TWTR $EYES $PTNR $HURC
Haj
28 Nov 14 06:56:53
$FB added 77.26
Lauren Holmes
28 Nov 14 06:55:20
We track portfolio managers moves and recommends best trades at http://t.co/VrsGMCgPOC $AAPL $ORCL $FB
ML04
28 Nov 14 06:54:49
$FB looking weak.. may want to give some back
Sunrise Trader
28 Nov 14 06:51:47
@ibex no $FB here today
Sunrise Trader
28 Nov 14 06:51:33
@ibex $TWTR running with the blue line special. Same as $FB discussion chart
StockExpert
28 Nov 14 06:50:34
$GASL Wow Down over -30% $SPY $DIA $QQQ $USO $TVIX $FB $AAPL $TWTR $GOOG $MSFT $INTC $IBM $BRKA
Gosha Arinich
28 Nov 14 06:47:45
$FB and $IBM 👎
				
				
  +Follow July 30, 2013 4:50PM
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