Facebook Inc (NASDAQ:FB) shares are Wall Street favorite now days as the stock surged to its flotation price, although for a short time, it’s the first time since the IPO last year.
Roller coaster ride for Facebook Inc (FB)’s stock since IPO
Facebook Inc (NASDAQ:FB) shares hit $38-a-share float price on New York’s NASDAQ exchange and then came down to $37.63 at closing yesterday. From the previous week shares have gone up more than 40 percent after it reported huge revenue from mobile advertising.
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After IPO in May 2012, Facebook Inc (NASDAQ:FB) shares failed to stay over $38 float price. Following the sinking share price, its Underwriters were insisted to buy the shares to curb the fall. Towards the end of that month, stock dropped more than $10, reducing the value of Zuckerberg’s wealth by around $4 billion in less than two weeks. Shares came down another $10 by the end of August, slashing $50 billion from the market value.
Shares however, started rebounding last week after Facebook posted better than expected 53 percent year-on-year surge in revenue to $1.8 billion for the three months ending June. Among all the numbers posted by Facebook, Wall Street was particularly impressed with the 51 percent rise in mobile users totaling to 819 million.
The rising share price of the company now assign it a total market value of around $92 billion, which is eight times the value of Marks & Spencer.
Facebook from dorm room to board room
Facebook Inc (NASDAQ:FB) was founded by Mark Zuckerberg in his dorm room when he was only 20 years old. According to Bloomberg billionaires Index, Zuckerberg’s paper worth has increased from around $5 billion in a week to around $17 billion. Zuckerberg, 29 is admired for his simple living despite sitting on a heap of wealth. He attained 42nd rank from 75th in the world’s richest person Index leaving behind Steve Balmer of Microsoft Corporation (NASDAQ:MSFT) and Michael Dell, founder of Dell Inc. (NASDAQ:DELL). At the topmost position sits Bill Gates 57, founder of Microsoft with a net worth of $72 billion. Carlos Slim, 73, the Mexican telecoms tycoon, with $5.5 billion is behind Gates.
Facebook’s mobile shift
“We are investing in mobile, measurement and product innovation,” Sheryl Sandberg, Facebook’s chief operating officer, said on a conference call with analysts. “The results we’re reporting today demonstrate the early returns on these investments.”
David Kirkpatrick, author of The Facebook Effect, a history of the company, said that there were a handful of people who could sense early the transition of internet connectivity onto the mobile and it is already in process. He said to Bloomberg that Facebook Inc (NASDAQ:FB) has really made that shift.