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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
BOWE
22 Aug 14 23:22:46
@smoss @MarthaStewart RT @taylorswift13 @ayu_19980408 #BoweVSBruckheimerVSZuiker Call me a $FB user but I proposed on twitter for the record
P
22 Aug 14 23:12:25
RT @OMillionaires: $TWTR will be a $50+ stock in short order here - update over the weekend ~ something like this : http://t.co/NkYlSgDA7W …
Nate Martin McHariah
22 Aug 14 23:05:15
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Chasing Stars
22 Aug 14 22:53:49
$USLV 52Wk Low http://t.co/V1NRxX4JSj Also See: $GOOGL $SUNE $IBB $FB ~
Camille Belanger
22 Aug 14 22:51:24
Good>Jell-O Can't Stop Slippery Sales Slide http://t.co/KfKKhn2iKM via @daily_finance $KRFT $MDLZ $FB
Investors Hangout
22 Aug 14 22:47:17
$USLV Day Low http://t.co/XRsOMrQWDt Also See: $XLV $FNMA $FB $TD.TO ~
Business Headlines
22 Aug 14 22:19:27
$FB: 10 ways Facebook is telling businesses to confront changing ad market http://t.co/hdkG5BDk98 http://t.co/YruuwvkBJ9
US Consumer News
22 Aug 14 22:16:13
Facebook Director Susan Desmond-Hellmann Sells $46,850 in $FB http://t.co/TIAPc3YAY6
US Banking News
22 Aug 14 22:16:01
Facebook Director Susan Desmond-Hellmann Sells $46,850 in $FB http://t.co/oHDlGsCSAf
Chris
22 Aug 14 22:02:43
http://t.co/NUQdZS6xaP New position in $FB Suckered myself in trade didn‘t get least .10 & or my goal .20 last trade.Wanted .38 might ne...
Bidness Etc
22 Aug 14 22:00:20
Vienna Regional Court gives Facebook four weeks to respond to a class action lawsuit filed against it http://t.co/ZuQ8tEjS94 $FB
Chris
22 Aug 14 21:49:06
http://t.co/fgYfrIdYkd Verified $7.08 profit in $FB Great entry 5min 2min better entry .68 but not in my rules & use 5min after 7:30.Add...
Swing Trade Alerts
22 Aug 14 21:45:42
IBD:Americans spend 52% of their digital media time on mobile apps http://t.co/nSL0jIqGIN $FB $P $AAPL $GOOGL
Hadel S. Ma'ayeh
22 Aug 14 21:32:49
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Business News
22 Aug 14 21:19:33
$FB: [video] Facebook vs. Twitter: Who Won the Week in News? http://t.co/U4KnbS4NWo http://t.co/bAByaBNLKQ
moderneconomist.com
22 Aug 14 21:13:52
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$WEETLEAF
22 Aug 14 21:04:01
RT @PipsToDollars: $FRFC $TWTR $FB $NFLX $AMRN all up after hours Friday
PennyStock Zone
22 Aug 14 20:59:06
Timothy Sykes Penny Stocking Silver Alerts Review http://t.co/QvXwwQkoVR #stocks #trading #nyse #nasdaq $FB $TWTR $RCON $XGTI
Timothy Sykes
22 Aug 14 20:50:17
Some great trading tips from Tim G http://t.co/HkCgEjxPcq when he was up just $200k, $1.8 million in profits ago, learn $FB $TWTR $LNKD
Stephen M Richardson
22 Aug 14 20:44:16
RT @PipsToDollars: $FRFC $TWTR $FB $NFLX $AMRN all up after hours Friday
Andrea Paine
22 Aug 14 20:43:49
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
PennyStock Zone
22 Aug 14 20:40:20
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Justin Pulitzer
22 Aug 14 20:30:47
“@RBTRYK: @JustinPulitzer Yep. So did $FB last week...”<~$FB looks fine to me. Held 20MA well.
Jeff Chmielewski
22 Aug 14 20:30:38
@DowdEdward @srussolillo @hopeyoucaughtit @WSJMoneyBeat @jasonzweigwsj $FB same as $AMZN right now. Index bid now that mkt cap near $200bn.
Leilani Pips
22 Aug 14 20:28:33
$FRFC $TWTR $FB $NFLX $AMRN all up after hours Friday
Cit Dates
22 Aug 14 20:28:31
SPX CIT Dates: $FB Channel and Trend http://t.co/dItCZgsedt
Munchkin
22 Aug 14 20:26:27
Jell-O Can't Stop Slippery Sales Slide http://t.co/NfG5PV4vaC via @daily_finance $KRFT $MDLZ $FB
CB4
22 Aug 14 20:11:26
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
aka The Dook
22 Aug 14 20:04:00
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
XBanker Trader Guyer
22 Aug 14 20:03:39
RT @IBDinvestors: Americans spend 52% of their digital media time on mobile apps http://t.co/cSWwTmyFAG $FB $P $AAPL $GOOGL
Thomas P. Eller Jr.
22 Aug 14 19:55:32
$FB WORTH A LONG POSITION?
Swapnil Puranik
22 Aug 14 19:54:26
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Ginger Cat Games
22 Aug 14 19:49:23
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Martin Lepage
22 Aug 14 19:38:19
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Fake CNBC
22 Aug 14 19:37:28
RT @JBling5: @fakeCNBC I visit $FB maybe once a week for 10 mins. $TWTR 7 days a week and continuously checking during trading hours.
dilraj nalukandathil
22 Aug 14 19:36:45
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Motivasi Leader
22 Aug 14 19:34:54
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Freddy Meyer
22 Aug 14 19:28:51
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Explorite
22 Aug 14 19:27:11
Social Media Marketing Experts Get Close To Consumers #SocialMedia http://t.co/f4XmunX4dT #IBDNews via @IBDinvestors $LNKD $TWTR $FB
Guyanne Lillie
22 Aug 14 19:25:19
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Acquanetta Moore
22 Aug 14 19:24:10
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
She Rocks The Planet
22 Aug 14 19:23:00
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Thomas M. Rasinen
22 Aug 14 19:22:55
Awesome digital creative for $FB w/ a link, copy you can read on a mobile phone, #cta plus promotion by @irisatlanta http://t.co/dUJoDj2GeA
content_empress
22 Aug 14 19:22:43
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Studio 72dpi
22 Aug 14 19:22:20
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Anita McMillan
22 Aug 14 19:21:13
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Brill  (N.W)
22 Aug 14 19:20:09
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Pierre Demers
22 Aug 14 19:20:07
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Financial Headlines
22 Aug 14 19:19:29
$FB: Trade gives Facebook room to run http://t.co/XN7xGLMvTl http://t.co/MYDhSgygpw
Navin Jay
22 Aug 14 19:19:11
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
				
				
  +Follow July 30, 2013 4:50PM
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