Friday, July 26, 2013
Facebook Recovering Lost Ground?
Facebook had an initial IPO price of $38 per share, briefly climbing to $45, then slowly declining last year. Many people, including myself, believe that Facebook had been overpriced and overhyped. Could I have been wrong? Bloomberg reports on a recent surge of Facebook stock prices based on higher than expected revenue. Facebook closed at $34.36 yesterday. So, if you bought stock at the IPO price, you are still in negative territory. While the Bloomberg article discusses that Facebook has been able to successfully transfer advertising to mobile platforms, it does not discuss the number of users and whether that number is increasing, decreasing, or holding steady. And that, over the long-term, will be the important factor.
Posted by Docent at 3:56 PM