Facebook Stock Tops $50 for the First TimeBy: Josh Wolford - September 26, 2013
Facebook’s stock price hit an important milestone Thursday, crossing the $50 barrier for the first time. That’s more than $12 higher than the IPO price and over $32 more than the stock’s price at its lowest point back in August of 2012.
It’s not just an important milestone, but an impressive one considering where Facebook’s stock price was just a year ago. It’s been a long battle back for the company, whose initial public offering was met with enthusiasm back in May of 2012. But that enthusiasm quickly turned to concern, as investors worried about Facebook’s perceived inability to monetize – especially in the fast-growing mobile space.
In the stock chart above, you’ll see a distinctive point in which Facebook’s stock price jumped. That spike correlates with Facebook posting strong Q2 earnings. Revenue from advertising shot up from 61% in Q2 2012 to 88%. More importantly, mobile ad revenue accounted for 41% of Facebook’s ad total ad revenue for the quarter – up 11% year-over year.
Facebook reported total revenue of $1.81 billion.
Investors bullish on Facebook’s potential cite these figures, as well as reported future ad units as reasons to trust in Zuck and crew. As you know, Facebook is on the precipice of rolling out a large video ad network which could see advertisers pay up to $2.5 million per day to run short video ads on users’ newsfeeds.
Of course, it will all depend on the new numbers. Facebook reports Q3 earnings next month.
Image via Facebook investor relations