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
StockNewsWires
22 Dec 14 01:33:03
$FB $PG: 5 Stocks in Dramatic Moves: Facebook Inc (NASDAQ:FB), The ... http://t.co/UkvPrMxwpL http://t.co/1GOGK4KrFm
StockNewsWires
22 Dec 14 01:33:03
$FB: Facebook share price:Citi values Instagram at $35 billion http://t.co/gF8FR4SsaX http://t.co/SQjyp2dCg8
archerlotus
22 Dec 14 01:32:47
RT @EdmondLococo: #Uber CEO can't match Zuckerberg's Mandarin but he's got something #Facebook lacks: Baidu backing in #China http://t.co/t…
Sicarius
22 Dec 14 01:30:13
RT @JustinPulitzer: Weekend Review 12.21.14: $SPY, $QQQ, $IWM, $TLT, $AAPL, $BABA, $FB, $TWTR, $GILD, $GPRO, $GOOGL, $NKE, $SWKS, $TSLA htt…
Penny Stocks Blog
22 Dec 14 01:04:26
RT @pbrat40plus: Check out my video on my recent $FB trades on my new #socialmedia #stocks #daytrading strategy- 3 trades in 1 week!! http…
Nest Egg
22 Dec 14 01:02:58
RT @pbrat40plus: Check out my video on my recent $FB trades on my new #socialmedia #stocks #daytrading strategy- 3 trades in 1 week!! http…
paul bratby
22 Dec 14 00:55:09
Check out my video on my recent $FB trades on my new #socialmedia #stocks #daytrading strategy- 3 trades in 1 week!! http://t.co/eVMVc8wVQ4
BUZZ Just-In
22 Dec 14 00:54:40
Monitor your watchlist of assets for tweets- US Tech Giants http://t.co/9eY6Vonn4o $AAPL $GOOG $MSFT $FB $TWTR
NigerianPrince 2krun
22 Dec 14 00:40:59
RT @JustinPulitzer: Weekend Review 12.21.14: $SPY, $QQQ, $IWM, $TLT, $AAPL, $BABA, $FB, $TWTR, $GILD, $GPRO, $GOOGL, $NKE, $SWKS, $TSLA htt…
Richard benson
22 Dec 14 00:40:53
RT @Bidnessetc: #Facebook is partnering with HLN to create a TV series http://t.co/ttVYaU5psT $FB $TWX http://t.co/mRWKdmrITp
Tonderai Salimu
22 Dec 14 00:38:46
RT @GoogleFacts: Facebook bought Instagram in late 2012 for a final price tag of $715 million. Instagram is now worth $35 billion. $FB
Gilbert MAHE
22 Dec 14 00:32:19
RT @planetoptionews: Teens continue to flee #Facebook, study shows http://t.co/wbmU9SxxTT #socialmedia $FB #socialnetwork #tech #study http…
Diego D'Aquilio
22 Dec 14 00:31:25
#Facebook $FB in 2015: Drones, messaging and virtual reality, oh my! http://t.co/KdtNHMEpOj
Planet Option
22 Dec 14 00:28:35
Teens continue to flee #Facebook, study shows http://t.co/wbmU9SxxTT #socialmedia $FB #socialnetwork #tech #study http://t.co/RSFuuJ3zUE
YogiShan
22 Dec 14 00:28:08
Hey #traders. In terms of percentage wise & dollar wise, how much was everyone up this year? $SPY $TWTR $AAPL $FB $TSLA $NFLX
Marian Z.
22 Dec 14 00:23:47
Watchlist 12/22/2014: http://t.co/Dp0LNxyPPu $LJPC $ADXS $TRXC $ALIM $CUBA $FB $TWTR $SPY $AAPL
Paul Josaph
22 Dec 14 00:22:30
RT @Bidnessetc: #Facebook is partnering with HLN to create a TV series http://t.co/ttVYaU5psT $FB $TWX http://t.co/mRWKdmrITp
PennyStock Zone
21 Dec 14 23:52:59
http://t.co/X5RWmIYKd4 Use coupon code PROFITMAS on any Profitly newsletter 50%+ discount! $PETX $RCAP $FB $NVEE $TWTR
PennyStock Zone
21 Dec 14 23:40:55
http://t.co/5cLTmATUzn <-- Don't blindly copy Tim Sykes or SuperTrades! $OIL $VMW $USD $TWM $ANIP $DRI $SCO #stocks $FB
BUZZ Just-In
21 Dec 14 23:39:37
Don't ignore transactions costs- they add up- US Tech Giants http://t.co/TPs273ELCb $AAPL $GOOG $MSFT $FB $TWTR #spreadbetting #cfd
SeriousOne
21 Dec 14 23:32:26
Unless you opt out “@afterdawn: Facebook is 'auto-enhancing' your uploaded photos on iOS $FB http://t.co/4kADD0dMwL” @facecrooks
Teddi Knight
21 Dec 14 23:28:53
$FB Stock upcoming trade alert for Monday at the open http://t.co/FDsuBcuDev
BUZZ Just-In
21 Dec 14 23:24:36
Why access a ticker when you could acesss a group of tickers- Social Media Stocks http://t.co/lHJArhR8df $FB $LNKD $TWTR $GRPN $ZNGA
Maleah
21 Dec 14 23:01:23
http://t.co/vexyB9oERV SuperTrades student on track to $1 million profit 1st year trading! $ADXS $RTRX $ONVO $ECIG $FB $TWTR $LIVE
Russell Barbour
21 Dec 14 22:49:41
http://t.co/BNtXD2jA94 <-- These trading books changed my financial life forever! $MOMO $CALA $CLDN $CEMP $DATE $FB $TWTR
PennyStock Zone
21 Dec 14 22:32:06
http://t.co/akfGBSbEYO <-- Details profitly subscribers who are making HUGE money online stock trading! $HURC $NVEE $EYES $FB $TWTR
Brett
21 Dec 14 22:23:53
RT @JustinPulitzer: Weekend Review 12.21.14: $SPY, $QQQ, $IWM, $TLT, $AAPL, $BABA, $FB, $TWTR, $GILD, $GPRO, $GOOGL, $NKE, $SWKS, $TSLA htt…
Mark Trader
21 Dec 14 22:10:18
I banked over 200% in gains during my 14-day trial with http://t.co/6cvEHBeuNR. Their 5 guru traders are amazing. $NOK $INTC $FB $BBY
Stockefeller
21 Dec 14 22:07:10
RT @timothysykes: ONLY 4 DAYS LEFT to lock in 70% off on my http://t.co/ohBxlACn34 20+ hour DVD guide all going to charity, grab it NOW $FB…
BUZZ Just-In
21 Dec 14 21:54:33
Monitor your watchlist of assets for tweets- Social Media Stocks http://t.co/lHJArhR8df $FB $LNKD $TWTR $GRPN $ZNGA
Pot-stocks.com
21 Dec 14 21:46:32
Top 4 Signs the Stock is a Scam http://t.co/ttcBMorB08 #stocks #trading $FB $GPRO $LNKD http://t.co/MJtMuknJkI
PennyStock Zone
21 Dec 14 21:37:58
http://t.co/B5IyqmW7L0 SuperTrades student on track to $1 million profit 1st year trading! $PAOC $MOBO $THCZ $FB $NQ $ZPIN
Russell Barbour
21 Dec 14 21:37:13
http://t.co/mhPvRIJpkL SuperTrades student on track to $1 million profit 1st year trading! $ADXS $RTRX $ONVO $ECIG $FB $TWTR $LIVE
TheClosingBell
21 Dec 14 21:28:20
The Closing Bell is out! http://t.co/rQE911a6VP $EURUSD $GBPUSD $USDJPY $AUDUSD $SPY $TWTR $GPRO $YHOO $LNKD $FB $AAPL $BRD $CAT $WLT $LNKD
Beating the Market
21 Dec 14 21:21:55
New post: $FB http://t.co/ajzr0uDtYv
DEBRA LEE
21 Dec 14 21:20:04
RT @SeekingAlpha: 4 Key Tech Items To Watch In 2015 http://t.co/sNXFQthWzI $AAPL #APPLE $BABA $FB $GOOG $GOOGL $TWTR $YHOO
Navin Jay
21 Dec 14 21:18:56
RT @SeekingAlpha: 4 Key Tech Items To Watch In 2015 http://t.co/sNXFQthWzI $AAPL #APPLE $BABA $FB $GOOG $GOOGL $TWTR $YHOO
David Crawford
21 Dec 14 21:18:04
“@ValaAfshar: Company born from Unix command: w - twitter find - goog rcp - dropbox dir - yahoo finger - linkedin cron - ifft” ; cat - $fb
Stephen s
21 Dec 14 21:16:15
RT @Pharma_Trader: @ItonisHoldings Great news for $ITNS, $MYEC and all shareholders! $FB $TWTR @EdStarrs #Emesyl http://t.co/TVe8VP7v6r
3alharbi
21 Dec 14 21:16:01
RT @s_s_o0: $LNKD $AAPL $GOOGL $GOOG $FB $YHOO #options #اوبشن #تداول تحليل #مؤشر #الداو_جونز #مستشارك_المالي http://t.co/dQmFCJ5j03
PennyStock Zone
21 Dec 14 21:15:39
http://t.co/akfGBSbEYO <-- Details profitly subscribers who are making HUGE money online stock trading! $HURC $NVEE $EYES $FB $TWTR
Henry McKee
21 Dec 14 21:08:58
RT @timothysykes: ONLY 4 DAYS LEFT to lock in 70% off on my http://t.co/ohBxlACn34 20+ hour DVD guide all going to charity, grab it NOW $FB…
Maleah
21 Dec 14 21:04:40
http://t.co/vexyB9oERV SuperTrades student on track to $1 million profit 1st year trading! $ADXS $RTRX $ONVO $ECIG $FB $TWTR $LIVE
Savor The Vapor
21 Dec 14 21:04:18
RT @GoogleFacts: Facebook bought Instagram in late 2012 for a final price tag of $715 million. Instagram is now worth $35 billion. $FB
James DiPlata
21 Dec 14 21:03:25
RT @SeekingAlpha: 4 Key Tech Items To Watch In 2015 http://t.co/sNXFQthWzI $AAPL #APPLE $BABA $FB $GOOG $GOOGL $TWTR $YHOO
Quantpost Technology
21 Dec 14 21:01:38
$FB $GOOG $GOOGL $TWTR $YHOO News: "4 Key Tech Items To Watch In 2015 $AAPL …" http://t.co/0C8kZaSZf6 Board view: https://t.co/RIxBPeOwQh
Quantpost Cnsmr Good
21 Dec 14 21:01:37
$AAPL News: "4 Key Tech Items To Watch In 2015 $AAPL #APPLE $BABA $FB $GOOG …" http://t.co/JNKZ7u0Ljp Board view: https://t.co/UKnOp11FuV
Seeking Alpha
21 Dec 14 21:01:34
4 Key Tech Items To Watch In 2015 http://t.co/sNXFQthWzI $AAPL #APPLE $BABA $FB $GOOG $GOOGL $TWTR $YHOO
Patriot Trading
21 Dec 14 21:01:06
@ItonisHoldings Great news for $ITNS, $MYEC and all shareholders! $FB $TWTR @EdStarrs #Emesyl http://t.co/TVe8VP7v6r
Mark Kuno
21 Dec 14 20:59:14
@JustinPulitzer I missed seeing your 2015 predictions that you referred to when speaking of $FB. I wood appreciate your retweeting them. Thx
				
				
  +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.