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(Image source: The Telegraph)
BY COLLIN RUANE
It took more than a year, but Facebook's stock
hit a milestone Friday.
It closed Friday trading at $40.55 a share — the first time it has closed above the
$40 point since it's IPO in May 2012. The stock is up from less than $25 a share this
spring. (Via Fox News)
But it took a long time to get to that point. You might remember the fanfare behind Facebook's
stock market kick off more than a year ago, and the painful next few months the company
saw. (Via Mashable)
It went as high as $45 in it's first day of trading, but quickly dropped. And in less
than four months, it lost more than half of its value, standing at less than $18 per share.
(Via KUSA)
And after that, any moves by the stock were mostly slow gains. It went up about $6 per
share between September and early this summer. (Via KRON)
But since the end of July, Facebook's stock has shot up by about 50 percent. That has
many people wondering why.
For starters, Facebook is showing encouraging signs of growth in the mobile market. It's
ad revenue was almost non-existent a year ago, but it's forecasted to hit more than
$900 million in the third quarter. (Via CNET)
Plus, Forbes writes Mark Zuckerberg has shown strong leadership in adapting to the mobile
market in such a short amount of time.
It seems many investors are starting to
jump on the bandwagon with how quickly the stock has skyrocketed. But a writer for Business
Insider thinks the rise won't last for long.
"I personally think it's expensive. I think the mobile revenue surge that triggered the
recent moonshot will decelerate as the the product matures and the stock multiple will
likely then compress again."
Either way you look at it, Facebook's stock jumped more than 5 percent alone on Friday.