It seems like finally Facebook has managed to find its way to strengthen its grip on Wall Street after the mega debut of around 14 months back. Facebook’s soaring stock has closed above its IPO price of $38 for the very first time since its introduction into the US stock market.
The shares of the social networking giant have gained 56 cents to close the session of the day at $38.05. It has to be added here that in the first day trading in May 2012 Facebook’s stock ended at $38.23, which is till now the highest closing price of this entity.
Facebook Inc. entered the Wall Street with a very high initial public offering (IPO) of $38. It expected that investors would love to buy its stakes in large numbers in order to be proud share-holders of one of the best websites of the world, which is also the leader of the social networking world. But things didn’t go as per the plans of the company, and Facebook’s stock dipped down to as low as $17.55. Most of the investors showed their worries about the upcoming growth prospects of the Facebook, and this had affected the social media king a lot in past days.
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But in the last week only the scene has began to change as Facebook announced better Q2 earnings than the predictions of the leading market analysts. As a good result of that the stock began to soaring, and the investors were coming to buy stakes of the company.
Eventually Facebook has finally managed to optimize its mobile visitors, and this contributed a lot in the current success, which is now reflecting in forms of the price of the stock. The second quarter earnings report of the company which ended in June 2013 showed that Facebook is selling more ads on tablets and smartphones.
Currently Facebook has more than 1.1 billion active users who basically log into their social accounts via their mobile devices. The California based company has finally been able to utilize this numbers and now it is making good amount of money too from it. Interestingly, in the 2nd quarter more than 40 percent of Facebook’s total ad revenue came from mobile devices only, which is a clear increase of as much as 30 percent from the first three months of the current running year.
Facebook announced its Q2 report on July 24 and since then its stock has shown a huge rise of 44 percent. Experts are saying that the continuous positive growth on mobile devices is the main reason of this success.
In the current world mobile browsing is the key to the success of any online sites, and Facebook has able to understand and properly optimize it. That is why Facebook’s stock closes above its IPO price for the very first time indeed. We are hoping that the social networking site will be able continue this rise in the coming days too.
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