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Facebook Nears IPO Price as Stock Jumps Again

  +Follow July 30, 2013 4:50PM
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.

Results for FB
20 Apr 14 11:28:04
Earnings news on $PRU $SWKS $DATA $FB #personalfinance http://t.co/itUHeiyc8E
Legend Boulstridge
20 Apr 14 11:17:34
Are you looking for winners like $WPX $DCI $BOKF $FB Try this http://t.co/trJPSJyQ0O
20 Apr 14 11:17:06
.@Facebook Unveils NEW Feature: Nearby Friends. Creepy or cool? http://t.co/Dr2ozhfLen $FB
Jerrin Palathinkal
20 Apr 14 11:17:00
Ansel Galvan
20 Apr 14 11:16:41
$PCG #Stocks you might want to buy $HPQ $MAC $FB Give it a try http://t.co/pw7QlzyS5t
20 Apr 14 11:07:48
$OODH - A.V. TIMBER EXPERTS starts this week on its planned Mid-April to August Lumber harvesting! $$$$$$ #congrats #stocks #IRA #401K $FB
North Carter
20 Apr 14 11:07:46
$DD Best research on #stocks such s $IM $SE $FB Goto http://t.co/ObHaBcCQDN
Stock Occulus
20 Apr 14 11:04:02
Top #Stocks today. Find out why. $MRK $REGN $ATI $FB #wallstreet http://t.co/CoyvnuJbK7
Lutz Braune
20 Apr 14 11:03:04
$FB Facebook’s ‘Nearby Friends’ Feature: How It Works and Who Can See You http://t.co/tNsa9J6Kic
JD Dollar
20 Apr 14 11:01:24
Top #Stocks today. Find out why. $CAT $MWV $L $FB I suggest http://t.co/y97ch1icMK
Timothy Sykes
20 Apr 14 11:00:36
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Major Brown
20 Apr 14 10:59:07
#Stocks you might want to hold onto $GIS $MCSA $PII $FB #liquidity http://t.co/DFpgvCgdSu
20 Apr 14 10:58:58
RT @OptionsHawk: BIG Week: Earnings Snapshots $NFLX, $VMW, $AAPL, $FFIV, $FB, $QCOM, $CAT, $AMZN, $BIDU, $V http://t.co/80hhEAK2pm
20 Apr 14 10:57:49
RT @Benzinga: #Earnings For The Week Of 4/21: $AAPL, $FB, $GM & More $AMZN $F http://t.co/pumkvRQ6it #premarket
20 Apr 14 10:52:05
RT @Khanoisseur: For $FB ads, iOS users 1790% more profitable vs Android; bumps ahead in emerging markets @BenedictEvans @trengriffin http:…
Edward Gofsky
20 Apr 14 10:48:31
RT @muathe: [VIDEO] Weekend Stock Market Analysis April 19 2014 [PUBLIC] $BAC $QQQ $FB $WB $CSCO $JPM $ZNGA $GM $INTC $MU $AA https://t.co/…
Boaz Boulstridge
20 Apr 14 10:47:49
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Lutz Braune
20 Apr 14 10:47:06
$FB Facebook’s 'Nearby Friends' -- 3 Critical Questions http://t.co/8YVBaQiaRP
Jeff Reeves
20 Apr 14 10:45:03
@BendOrion $FB I am iffy on given further ad weakness at $GOOG and $YHOO... But that didn't stop Zuck last quarter. $NFLX I have no beef.
20 Apr 14 10:43:25
RT @OptionsHawk: BIG Week: Earnings Snapshots $NFLX, $VMW, $AAPL, $FFIV, $FB, $QCOM, $CAT, $AMZN, $BIDU, $V http://t.co/80hhEAK2pm
20 Apr 14 10:38:23
#Buy $DNAX #DNA #Energy #Drinks #New #CEO #Real #Experience > $FNMA $HEMP $PMCM $PHOT $PLPL $CBIS $JPM $GS $MS $TSLA $FB $TWTR $GOOG $MSFT
Joe Kunkle
20 Apr 14 10:37:31
BIG Week: Earnings Snapshots $NFLX, $VMW, $AAPL, $FFIV, $FB, $QCOM, $CAT, $AMZN, $BIDU, $V http://t.co/80hhEAK2pm
20 Apr 14 10:33:32
$OODH - If you make reasonable offers on ORION DHC, Inc you might get shares. Shareholders know what they own. #MMJ #jobs #stocks $FB $P
gordon gekko is god
20 Apr 14 10:29:19
Facebook 1Q14 Preview: Engagement In Focus; MVNO The Next Catalyst? http://t.co/JEOht5hr3N $FB
20 Apr 14 10:24:52
I am usually bearish on $FB but I'm digging the Paper app as an alternative to Flipboard. Feels less overwhelming; could see usage increase.
Lutz Braune
20 Apr 14 10:24:34
$FB Why Priceline's CEO Is Completely Wrong About Facebook And Twitter http://t.co/anUOsUua4k
Brick Brocky
20 Apr 14 10:21:51
$VTR Earnings news on $NI $BRKR $FB Check out http://t.co/C44ogAE8tE
20 Apr 14 10:17:05
$FB: You Should Be Nervous If Facebook Tried to Tackle Mobile Payments http://t.co/WgktVfw9Tw
Financial Iceberg
20 Apr 14 10:16:06
FACEBOOK Daily Technicals - Back Into the the Coal Mine ? $FB http://t.co/PuXJd8huU5
The LincolnList
20 Apr 14 10:12:31
Fear is the destroyer of dreams. Here are a few things to help you cope with it http://t.co/pfWfMo9BWX $SPY $SUDY $FB $TWTR $AAPL
Fausto Tilley
20 Apr 14 10:12:26
#Stocks you migh want to Sell $GCI $DOW $FE $FB #Research http://t.co/aAKrslsc09
20 Apr 14 10:11:38
$FB: Maria Bartiromo talks to BlackBerry CEO Chen http://t.co/ximSGmpf2B
Albert Perales
20 Apr 14 10:05:22
Is it breakout time on $AKAM $HCA $MB $FB #liquidity http://t.co/VCTvGqn9Sh
Donte Aldaine
20 Apr 14 10:03:00
$CHTR Stocks to Watch this week $NLY $CPB $FB #wallstreet http://t.co/aZmMQj3opu
Trader Mike
20 Apr 14 10:00:21
On watch this week is $CRM $SCTY $PLUG $FCEL for breakouts. $FB plenty of upside with ER. $75 target
Bettie Pagan
20 Apr 14 09:58:56
Get great research on stocks $DRE $VOYA $OMC $FB #financial http://t.co/3FHgzDXO4m
Social Alpha Inc
20 Apr 14 09:56:57
Hottest stocks on social media now: $PFE $M $MS $WAG $FB $GOOG $AAPL $SPY. Trade social buzz @ http://t.co/QYdMxh2gP8 #tradeSentiment
Crew Daily
20 Apr 14 09:56:23
$DOW #Stocks to hold onto $FB $KO $DO #wallstreet http://t.co/es7rF42Is1
20 Apr 14 09:55:40
Published $FB estimate on Estimize: +0.05 EPS and +31.32M Revs compared to Wall Street's consensus. http://t.co/wvrFX3GAbx
Lutz Braune
20 Apr 14 09:52:04
$FB The Chatter for Sunday, April 19 http://t.co/tp1qXuQ42I
20 Apr 14 09:47:58
It could be breaktout time on $KMI $DST $DSW $FB #economy http://t.co/1QFLNcmU5j
20 Apr 14 09:46:42
RT @timothysykes: 40-60% off http://t.co/RsMwSJRVaF & http://t.co/2mrD9Am3eJ blowout savings, will only last a few days $FB $TWTR $LNKD $GO…
Brecken Khamba
20 Apr 14 09:42:47
$EA Whats going on with $O $CVC $FB #financialnews http://t.co/YqMGkqikWQ
Arnulfo Adamson
20 Apr 14 09:42:46
#Stocks to hold onto $FULT $HRL $MCD $FB #NSE http://t.co/81gXtntZFK
Crew Gretzky
20 Apr 14 09:39:25
$AES Whats going on with $MJN $GILD $FB Try this http://t.co/8zLcDdRNvW
20 Apr 14 09:39:04
$FB: You Should Be Nervous If Facebook Tried to Tackle Mobile Payments http://t.co/KxqJ6ZqYcK
Patty Porter
20 Apr 14 09:38:34
Could be breaktout time on $VTR $CBT $DCI $FB I suggest http://t.co/AFqKfwiYUr
Zackery Jaxon
20 Apr 14 09:37:23
$SIAL Wow. Great #Stock #Research on $VMI $ANSS $FB #overvalued http://t.co/nOxjUkKw3P
20 Apr 14 09:35:23
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20 Apr 14 09:35:11
$OODH - A.V. TIMBER EXPERTS starts this week on its planned Mid-April to August Lumber harvesting! $$$$$$ #congrats #stocks #IRA #401K $FB
  +Follow July 30, 2013 4:50PM



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