Facebook soaring stock closes above $38 IPO price

A+
A
A-

Facebook founder, Chairman and CEO Mark Zuckerberg, center, rings the Nasdaq opening bell from Facebook headquarters in Menlo Park, Calif. Facebook’s stock has passed its IPO price of $38 before the market open on Wednesday, July 31, 2013. AP

MENLO PARK, California — Facebook’s resurgent stock has closed above its IPO price for the first time since the online social networking leader made its debut on Wall Street more than 14 months ago.

The shares gained 56 cents to finish Friday’s session at $38.05. That’s the stock’s highest closing price since ending its first day of trading at $38.23 in May of last year.

Facebook Inc. priced its initial public offering at $38 per share amid lofty expectations that investors would be clamoring to buy a stake in one of the world’s best-known websites. Instead, trading problems hurt the company’s stock market debut, and then worries about Facebook’s growth prospects triggered a sell-off that dropped the stock as low as $17.55.

The stock began soaring last week when Facebook reported better second-quarter earnings than analysts anticipated. The report for the three months ended in June showed that the company is selling more ads on smartphones and tablet computers, allaying fears that Facebook wouldn’t be able to make money off the growing number of its more than 1.1 billion members who regularly check into the social network on mobile devices.

More than 40 percent of Facebook’s ad revenue flowed from mobile devices in the second quarter, up from 30 percent during the first three months of the year.

The accelerating growth on mobile devices is the main reason that Facebook’s stock has jumped 44 percent since it announced quarterly results on July 24.

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • upupperclassman

    People are just getting back their money from FaceBook and you called the stock price soaring. This is clear abusive use of English language.

    • blue_lights

      actually, I bought shares at $20, so I am soaring all the way to the shopping mall!

To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.

Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:

c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94

editors' picks

advertisement
advertisement