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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
Andrew Tonner
28 Jan 15 10:16:35
After #Apple set records yesterday, it's #Facebook's turn today. Here's what to expect. $AAPL $FB http://t.co/fRjfFYzwy2 via @themotleyfool
Josh Selway
28 Jan 15 10:16:23
For the Super Bowl, Facebook $FB is launching... Twitter $TWTR http://t.co/048sf2GdN5
ProVesting
28 Jan 15 10:16:02
$FB $TWTR: Former Hedge Fund Manager: Facebook's Monetization Is More ...: http://t.co/gqHS2ErJmc
LightSeeker
28 Jan 15 10:15:47
RT @JayGeraghty: @douglaspurdy @finkd this would make a great sculpture for Menlo Park (blue lighting) $FB “@thereaIbanksy: Facebook http:/…
The Stock Professor
28 Jan 15 10:15:07
How Facebook is speeding up its app for iOS and Android: http://t.co/UxeXLF3XFC $FB $TWTR $LNKD $BAC
Emini Scalping
28 Jan 15 10:13:44
Get Your 7-day Free Trial $ES_F Live Trading Room Visit http://t.co/7n01tjVdSn $SPY $FB $NQ_F $SPX $YM_F $TSLA $NFLX $TWT $QQQ $DJI
Peter J. Delle
28 Jan 15 10:13:16
RT @2morrowknight: Facebook continues to dominate social logins, expands lead to 61% market share http://t.co/GyDHNYeJqs $FB #in http://t.c…
John Michael
28 Jan 15 10:12:49
RT @YahooFinance: Why muted expectations could be good for Facebook http://t.co/4HrHKcc9ZR via @Estimize $FB http://t.co/neoKX8IsBi
Winborn Traders
28 Jan 15 10:11:17
$ES_F EMINI SP500 Futures #TradingSignal #DayTrading Monthly Weekly & Daily Key Support Resistance Levels $SPY $SPX $AAPL #ES_F #ibroker $FB
Robert Lesnicki
28 Jan 15 10:10:56
$FB With Facebook reporting earnings tonight, here's how it looks chart-wise http://t.co/u6Umd0rR5U
Quantpost Technology
28 Jan 15 10:10:09
$FB News: "Former Hedge Fund Manager: Facebook's Monetization Is More Important…" http://t.co/D3ZMdyPm7e Board view: https://t.co/Z0rsOURzKA
Benzinga.com
28 Jan 15 10:10:08
Former Hedge Fund Manager: Facebook's Monetization Is More Important Than User Growth http://t.co/Cc1LFKDoEi $FB
Grant Dossetto
28 Jan 15 10:09:19
@jessefelder The way $MSFT got taken to the woodshed...if $FB misses and guides down it could easily be off 20% tomorrow. Tech must $AAPL it
: Chinbaby
28 Jan 15 10:08:58
$FB getting some love into earnings
IH News Desk
28 Jan 15 10:08:41
$SIRI Investor Opinions Updated Wednesday, January 28, 2015 12:11:30 PM $EBAY $FB $GLD $FCX http://t.co/ijnqHte6jm
Yahoo Finance
28 Jan 15 10:07:43
Why muted expectations could be good for Facebook http://t.co/4HrHKcc9ZR via @Estimize $FB http://t.co/neoKX8IsBi
rallystocks
28 Jan 15 10:07:43
$FB should touch $80 AH trading
Do Linh Océane
28 Jan 15 10:07:34
RT @JayGeraghty: @douglaspurdy @finkd this would make a great sculpture for Menlo Park (blue lighting) $FB “@thereaIbanksy: Facebook http:/…
Sara
28 Jan 15 10:06:42
Join me on tsū, is sharing social revenues with all of us. http://t.co/xycMWeldhM $LNKD $AAPL $GOOGL $GOOG $FB $YHOO http://t.co/AaTgZe5azd
danielo
28 Jan 15 10:06:18
So $FB tonight. What do you think?
Stockaholics
28 Jan 15 10:06:12
Our Penny Stock Alert On $QLTS Has Gained 34.62% In The Past 2 Days! Special Update: http://t.co/MNFk4FhSe1 $FB $MDLZ $CELG
Jesse Felder
28 Jan 15 10:05:40
Think there's a very good chance Facebook disappoints tonight. Web traffic is down and currency headwinds up. $FB http://t.co/rFB5eRzb6F
Harry Rivera
28 Jan 15 10:05:26
$TWTR was looking to go long today but going to wait for $FB fear any negative outcome could weigh heavily on it tomorrow.
SprinkleBit
28 Jan 15 10:05:20
#Earnings After Close (2/3): $DRE $ESIO $EXTR $FB $FLEX $FTNT $FXCB $GGP $GHL $ HOLX $IBKC $IEX $JEC $JBSS $KTCC $KRC $LRCX $LVS $MKSI $MUR
Laurence
28 Jan 15 10:04:16
@canuck2usa u playing $fb today?
MetaTrader
28 Jan 15 10:02:54
Going for the gold with $FB tonight. Got in some Feb 80 calls at 1.85
Javier Fusco
28 Jan 15 10:02:52
RT @ParkResearchLLC: $FB Earnings movement summary I won't be playing this one, but more on other earnings: http://t.co/W7jihlAILI http://t…
Mexican Charlie Day
28 Jan 15 10:02:39
RT @MrLXC: No clue how analysts relate Super Bowl with $FB increase. Should be looking at Twitter for that. Nobody posts $FB status' during…
Charles
28 Jan 15 10:02:23
No clue how analysts relate Super Bowl with $FB increase. Should be looking at Twitter for that. Nobody posts $FB status' during the game.
lendar79
28 Jan 15 10:02:21
RT @OptionsHawk: $FB seeing a massive bullish bias today w/ over $4.3M call premium bought and +940K Net Delta 3 hours in ahead of earnings
AvalonTradingTeam
28 Jan 15 10:02:04
USA, algunos resultados hoy: $FB #FACEBOOK $CLB CORE LABS $LVS LAS VEGAS SANDS (empresa de Sheldon Adelson) $MUR MURPHY OIL $QCOM QUALCOMM
Jason Olive
28 Jan 15 10:01:49
RT @SeekingAlpha: Will Facebook Top The Whisper Number This Quarter? http://t.co/dHndhyCond $FB
jP
28 Jan 15 10:01:27
@jerkob what do your projections show for $FB earnings?
Alpha Maven Alerts
28 Jan 15 10:01:16
$FB, Active, +4.59, 1H, 1:00 PM EST, 28 Jan, #NASDAQ $NDX $SPY
Bradley
28 Jan 15 10:01:14
Catch a winner in LIVE CHAT $GOOG $PCLN $TWTR $FB $AAPL $EBAY $GM $DUST $BABA http://t.co/l9JkTCL0PV http://t.co/HKVlk0unhc
Stock Hobbit
28 Jan 15 10:01:08
Logging in now to live stock chat http://t.co/v1eaRRes2Y $GOOG $AAPL $FB $EBAY #options #stocks #daytrading http://t.co/4ci965nn8O
OM_freebies
28 Jan 15 10:01:01
$GOOG $AAPL $FB $V January 28th, 2015 Watch List - Update from Futures are higher this morning, with the Nasdaq fu... http://t.co/Uu71VUGOTV
A. Maceroni
28 Jan 15 10:00:13
$FB strategy in the works. Small multiple buys into ER. If there's a beat and b/o above ~81 I'll add more. 3 more hrs!
H
28 Jan 15 09:59:43
$FB quick recovery from 3 month $76 support ahead of earnings. http://t.co/fCqgKbihZ2
NYCPunter
28 Jan 15 09:59:38
Ramping $FB INTO THE # Curious
Armando Gómez
28 Jan 15 09:59:33
RT @SeekingAlpha: Will Facebook Top The Whisper Number This Quarter? http://t.co/dHndhyCond $FB
RGF3 Esq.
28 Jan 15 09:59:03
Facebook Wants You to Know It Loves Free Speech (Except When It Doesn't) http://t.co/9UcwigRkFj #Censorship $FB #News http://t.co/6LVoy6pW6t
whiteteeshirtrading
28 Jan 15 09:58:46
$FB either way with a P/E in thu 70z and market cap nearing $GOOG i reemain skeptical, proove mee wrong bullz
Jason
28 Jan 15 09:58:03
RT @OptionsHawk: $FB seeing a massive bullish bias today w/ over $4.3M call premium bought and +940K Net Delta 3 hours in ahead of earnings
whiteteeshirtrading
28 Jan 15 09:57:56
i honestleey didnt even think people still uzed $FB thought it wuz like myspace at this point in time
Victor Newman
28 Jan 15 09:57:38
RT @OptionsHawk: $FB seeing a massive bullish bias today w/ over $4.3M call premium bought and +940K Net Delta 3 hours in ahead of earnings
Armando Gómez
28 Jan 15 09:57:20
RT @WhisperNumber: Will Facebook Top The Whisper Number This Quarter? $FB http://t.co/ydvV5F72In #FB
WhisperNumber.com
28 Jan 15 09:56:08
Will Facebook Top The Whisper Number This Quarter? $FB http://t.co/ydvV5F72In #FB
ProVesting
28 Jan 15 09:56:04
$FB $TWTR: Former Hedge Fund Manager: Facebook's Monetization Is More ...: http://t.co/2kewmXVtZ9
Brian Gallo
28 Jan 15 09:55:32
I'm gonna listen to this Carrie Underwood until $FB prints $100.....
				
				
  +Follow July 30, 2013 4:50PM
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