Facebook Inc. increased above its USD38 initial public offering (IPO) price for the first time since it was first launched May of last year. This meant capping a 14-month comeback driven by innovations in mobile advertising. The increase was seen in its intraday price after shares closed by 2.2%. This left Facebook up by 38% this year after tumbling to a low of US17.55 last September.
Facebook CEO, Mark Zuckerberg is benefiting from increasing advertising demand for smartphone and tablet users. Last week, Facebook said through a statement that ads on wireless devices made 41% of its revenue in the second quarter. The revenue of the company increased from its 14% revenue last year. This eased the issues concerning the company's ability to profit from mobile uses resulting to an increase above its IPO from its debut last year.
In an interview, analyst Ron Josey of JMP Securities Inc. said that the there might have been a psychological barrier with the IPO price. He added that with the increased demand for ads, the run for Facebook's offering has turned out fantastic.
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