Facebook (NASDAQ:FB) shares rose nearly 8 percent Wednesday from the day before, reaching $38.31, exceeding for the first time since May 18 of last year when the listing price was $38 per share. The social network stock was up 40 percent since $26.51 per share a week ago and closed down to $36.70 today.
Facebook on Tuesday was up 6.15 percent to $37.61, after strong growth in recent sessions, supported by good financial results announced by the company last week. The advance of Facebook’s quotation today was helped by a company announcement on a program that would increase revenue by supporting developers of games for smartphones.
Last year, Facebook shares have fallen to $17.55, wiping $48 billion off the company market value, after they have traded between $38 and $45 on the day of listing. Subsequently, the shares have gradually rose.
“Most companies of that size don’t re-accelerate their growth rate. Facebook’s been an exception. I would say they’re in better shape today than they were at the IPO price and the stock is still below that,” said Aaron Kessler, an analyst with Raymond James.
Facebook recorded in the second quarter a revenue of $1.81 billion, up 53 percent compared to the same period last year, and a net profit of $333 million, results that exceeded analysts’ estimates and confirm the company’s strategy investing heavily in mobile services. The mobile users figures increased 51 percent, reaching 819 million.
Speaking about the second quarter results, Pacific Crest Securities analyst Evan Wilson said that they “were really a game-changer in terms of how Facebook is perceived on the Street. It was pretty close to the perfect quarter.”
Facebook’s mobile advertising revenue reached 41 percent of company’s ad revenue, helping restore investor confidence.
“We are investing in mobile, measurement, and product innovation. The results we’re reporting today demonstrate the early returns on these investments,” said Sheryl Sandberg, Facebook’s chief operating officer, on a conference call.
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