Facebook Bounces Back To Above $38 IPO Price
Facebook chief executive officer Mark Zuckerberg has convinced shareholders that the company is mobile first. The company’s share price is now above $38 again. The company’s stock has not been this high since their IPO day on May 18, 2012. Facebook’s stock price rose 1.5% to $38.05 yesterday.
This is up from the stock price low of $17.55 in September, which was less than the $38 IPO price. Investors were calling Facebook’s IPOs one of the worst in a decade. Facebook’s mobile advertising business is on track to hit sales of over $16 billion by 2017.
Some investors that will really benefit from the stock rebound includes T. Rowe Price Group and Vanguard Group. Both of these companies hold large chunks of Facebook stock.
Mark Zuckerberg, the co-founder and chief executive officer of Facebook, has seen his net worth increase to $18.6 billion. This makes him richer than Microsoft CEO Steve Ballmer and Dell Inc. founder Michael Dell, according to the Bloomberg Billionaires Index.
After Facebook’s IPO was plagued with technical errors, the company was sued along with Nasdaq OMX Group Inc. and the underwriters. Investors claim that they were misled.
Along with increasing mobile ad inventory, Facebook is rumored to be launching TV style ads for $1 to $2.5 million per day. Facebook now has a market cap of over $90 billion and is trading at over 160 times earnings. Goldman Sachs has a $46 target price on the shares and there are at least 11 others that have set targets of over $38.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry