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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for FB
WKRB News
28 Aug 15 11:32:05
Mizuho Reaffirms “Buy” Rating for Facebook $FB http://t.co/E6G1QaMJ8j
BoardCentral
28 Aug 15 11:30:34
Twitter Stock buzz: $SPY $AAPL $EURUSD $FB $FCX (02:30 pm) #stocks #finance #stockmarket #StockPicks
StockExpert
28 Aug 15 11:29:29
$PGN New Insider Buying by CFO http://t.co/sVpeMh3QWf $SDRL $NADL $XOM $COP $BP Full DD on PGN Here http://t.co/G3dkitPCYi $WMT $FB $AAPL $F
Trev
28 Aug 15 11:28:36
RT @MMAstock: $MYEC ALL BUYS!!! #LetsGO #NextLegUp $TBEV $CRGP $VGTL $CTIX $TWTR $AAPL $GPRO $DIS $FB $NFLX $AMZN $GOOGL http://t.co/MivHNz…
Joshua Espinoza
28 Aug 15 11:27:27
RT @FoxBusiness: Week's biggest comeback stocks include $AAPL, $FB, $NFLX, and $TWTR. http://t.co/QnOyKzb0ca
Mark Fenton
28 Aug 15 11:26:39
RT @Tradingteeps: @gautam_icma @MarkEFenton @solar_corona @FX_Sniffer @Stasia_Sittman See my last free analysis for $SPX $AAPL $FB on http:…
PDJ
28 Aug 15 11:21:39
Great afternoon to write some calls on your longer term holdings... Ex: $FB $LNG $UAL $NXPI $SPY ...etc.... $$ #Monkeys
Stan
28 Aug 15 11:21:03
In $tsla and $fb calls yday before the close.. The only two that had a follow through. bang. how accurate is that. on fire accuracy.
Max Maxwell
28 Aug 15 11:18:21
Tech leading the rally back up 2.85% vs #SP500 up 0.72% in last 5 days $FB up 5.29%, $AAPL up 6.5% #technology http://t.co/0Pyh57z0FD
H. J.
28 Aug 15 11:12:44
RT @sanglucci: Juice going to $FB right off the open
Dr. Duru
28 Aug 15 11:10:45
$FB has closed the gap down from last Friday but now fighting with 50DMA resistance. Week could close as if nothing ever happened!
Simon Symple
28 Aug 15 11:07:50
$SPY $AAPL $FB $BABA The legend returns!!! follow me now or wish you did after missing the greatest calls on Twitter. #legend #obama #trump
Breaking News Now
28 Aug 15 11:07:02
$TWTR $LNKD $FB $GOOG: Twitter hops on the diversity goal train: http://t.co/EtRgw6OaFF
Johnny Trades
28 Aug 15 11:03:49
$FB Broke out of this hrly channel chart https://t.co/zn7PBcDRkY
Sweet Platform
28 Aug 15 11:03:31
Facebook Rolls Out Its Own Digital Assistant  $FB http://t.co/gzQQVuxIEi
Gr8wklyoptions
28 Aug 15 11:03:31
$FB_090415C89 Qty 100 at 3.25 Ask $ 32500 Vol 993 OI 2583 TimeOfTrade 2:03:28 PM
TickerLens Facebook
28 Aug 15 11:02:11
Morning Movers to Watch-Facebook (FB), Apple (AAPL), Alcoa (AA), Petroleo Brasileiro… http://t.co/EnGZsrfZ7K $FB
aaplalert
28 Aug 15 11:01:32
Stats so far today +2.54 making over a buck in $fb and $SPY today navigating the chop. http://t.co/48BOrxrVSK
Sentiquant
28 Aug 15 10:59:41
#toptickertweets $SPY $AAPL $UWTI $WEAT $FB $TSLA $FCX $NFLX $USO $TWTR #sentiquant #FinTech 20150828 14:00:06:292
TickerLens Facebook
28 Aug 15 10:58:55
Stocks Improve Into Mixed Territory; Facebook Adds To Gains FB ULTA GME http://t.co/33cWY1TtP3 $FB
TickerLens Facebook
28 Aug 15 10:58:55
Insider Selling: Facebook VP Sells $86970.00 in Stock (FB) http://t.co/gehQF9xUY6 $FB
The Trading Stand
28 Aug 15 10:56:29
Volatility is making its presence known today; insights into $YHOO $FB $GE $INTC ; http://t.co/HzCj0CzqZp
The Trading Stand
28 Aug 15 10:55:45
$FB opens > 10 day SMA + tests $91.15 resistance, indicator momentum seems to be slowing; close > $91.00 to stay safe http://t.co/HzCj0CzqZp
Wall Street Elevator
28 Aug 15 10:53:42
Market's boring AF $AAPL $NFLX $TSLA $AMZN $FB $TWTR
Bearhuntermkts
28 Aug 15 10:52:30
$FB back to the middle of its regression, just like $AAPL - $SPY $QQQ. Advantage sellers above and buyers below http://t.co/xxS3taQwD6
1320 ALLIANCE
28 Aug 15 10:51:07
RT @THESTOCKER: Facebook's 1 billion person day http://t.co/zVXpqYfEN3 $FB #Bullish #investment #investors #investing #stockmarket
leahanne
28 Aug 15 10:47:34
UNG United States Natural Gas Fund Open http://t.co/qCtqnvfn4b $UNG $UWTI $FB $CLD #UNG #share #pennystocks
ABTURK
28 Aug 15 10:47:07
$fb $gs $tsla $nflx $baba weekly put options may be the best for the options traders.
Pragmatic Profit
28 Aug 15 10:44:09
*Closing out $FB Sept $84 calls for $8.40-.55/sh; we'll be back here soon but gotta be prudent this wk. ~110% gain. https://t.co/X2RBMo0tCx
Chief Innov. Officer
28 Aug 15 10:43:40
Here's my innovation for $TWTR. It would create a new platform that now even $FB could compete with. http://t.co/xefRjrykzc @jack @adambain
The Stock Professor
28 Aug 15 10:43:34
On topic: Tech news to know now: http://t.co/sjveyJe2Ta $FB $TWTR $LNKD $BAC
Simon Walton
28 Aug 15 10:43:30
RT @CNBC: JUST IN: For the first time ever, one billion people used Facebook in a single day, $FB CEO Mark Zuckerberg says. » http://t.co/L…
Stock Wire
28 Aug 15 10:41:11
Facebook Inc Reveals Matching Software To Tackle Video Infringement $FB http://t.co/gI660Ht9ST
Stock Wire
28 Aug 15 10:41:11
Facebook Inc (FB) Discloses Form 4 Insider Selling : Exec. David B. Fischer ... $FB http://t.co/kYZVotKPRn
Stock_Tracker
28 Aug 15 10:40:07
MDXG MiMedx Group, Inc. Shares http://t.co/KsjNpDg9Rg $MDXG $FB $BIG $UUP #MDXG #investing #stocks
BP
28 Aug 15 10:40:04
this mkt is STILL EXTREMELY overbot at 1975 $spx just look at $fb at 91 lol. a slowing growth company means NOTHING.
traderdrone
28 Aug 15 10:39:23
$AAPL $FB another nose dive. Let me get it right. Pump it at noon and dump into close?! Seems to be the pattern for the last 3 days
Economics Highlights
28 Aug 15 10:38:00
RT @FoxBusiness: Week's biggest comeback stocks include $AAPL, $FB, $NFLX, and $TWTR. http://t.co/QnOyKzb0ca
#SocialMedia NC
28 Aug 15 10:37:15
Facebook Must Obey German Law Even if Free Speech Curtailed: Minister -… http://t.co/YxrVmbv2EM #Facebook • $FB http://t.co/2xDQHwSVI2
Amanda Brickman
28 Aug 15 10:36:06
Best "value" scoops here imo are $NFLX $DIS $FB $GOOG $BABA $SUNE $TERP $MBLY
Options Answers
28 Aug 15 10:35:47
RT @BPGAG: $FB Facebook certainly held up from early morning indicated strength.Nice job Bulls. #trading #socialmedia #stocks $SOCL ($YELP …
Rosner Stocks
28 Aug 15 10:35:34
FB Facebook, Inc. Filings http://t.co/UixzgPHh3S $FB $SIRGQ $CAT $USO #FB #invest #finance
nasdaqfan
28 Aug 15 10:35:03
EOG EOG Resources, Inc. Company Info http://t.co/U5Hqc4Yihx $EOG $XLE $SWKS $FB #EOG #investing #stockmarket
Dan Rogers
28 Aug 15 10:33:58
$FB: In exchange for much of your personal info and your time (the stuff of life), we give you ads and the illusion of intimacy. Great deal.
STOCKER
28 Aug 15 10:32:59
Facebook's 1 billion person day http://t.co/zVXpqYfEN3 $FB #Bullish #investment #investors #investing #stockmarket
Somanath
28 Aug 15 10:31:34
stockinetics : Indicator (Relative Volatility Index) signaled a Overbought for $FB at $90.… http://t.co/mgD3zeECAV) http://t.co/oRm3ZyuREk
David Chiappetta
28 Aug 15 10:29:32
Yesterday, one billion people -- one of every seven on earth -- used #Facebook. Let that sink in. http://t.co/RKbgunt93i $FB
GmblTrdr
28 Aug 15 10:28:30
Added $FB 91s for today😀 and 93s for next week
Harris
28 Aug 15 10:27:43
also in $FB at $86's, that dip from "black monday" was nothing but solid gold discount
BioTechDude
28 Aug 15 10:23:50
RT @yoldash718: 4 moves that I am killing myself over. Not buying more $fb and $rdus, not buy any $nflx and $slb
				
				
  +Follow July 30, 2013 4:50PM
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