Some trader just bought shares in Facebook Inc (NASDAQ:FB) for $45.09 a pop, the highest price ever paid for the security, and one that finally beat the highest point reached on the company’s IPO date back in May 2012. Facebook Inc (NASDAQ:FB) stock has been trading just under that high since, but the firm’s shares are up about 3 percent for the day.
When Facebook Inc (NASDAQ:FB) shares went public for the first time, the value shot through the roof in early trading. The IPO was one of the most anticipated of all time, and there were huge problems with Nasdaq trading. That makes the company’s previous all-time high less than credible, but today’s is fixed in some kind of solid base.
Facebook and China
Today Facebook Inc (NASDAQ:FB) COO Sheryl Sandberg met with China’s internet regulator Cai Mingzhao. That meeting, which could be the beginning of a relationship between Facebook and the Asian giant, was one of the reasons for the push upward in price today. Facebook’s social network is banned in China. As the world’s biggest market and one of the fastest growing groups of tech consumers, China is a target for Facebook investors.
Today’s meeting was likely not about opening China to Facebook Inc (NASDAQ:FB). It was probably about encouraging Chinese companies to advertise on Facebook. That revenue in and of itself could be extremely valuable to Facebook, but it needs China to relax its stand on Western social networks in order to make that happen.
If Facebook Inc (NASDAQ:FB) can develop some sort of relationship with the Chinese government, it is hoped that it might lead to some kind of limited presence for the company in the country. Facebook wants to get its foot in the door so that it can get into the country en masse later on.
Facebook on the move
Facebook Inc (NASDAQ:FB) shares have been performing generally well since July when the company revealed a phenomenal earnings report. That report caused stock to shoot up initially and turned many investors optimistic of the price of the company’s stock. The company has been showing off new products and features in recent months, enhancing the bullish sentiment around the social network.
The company’s future is not decided yet. It still needs to show it can beat Google in advertising, and develop new sources of revenue without destroying user engagement. For now, however, Facebook Inc is flying high, and the weight of IPO is gone from the company.