It is rally time for Facebook (NASDAQ:FB) as it ended at above $38 on Friday. The stocks for the company surpassed the elusive IPO price and closed at $38.05 in New York. The company is winning back investors’ confidence as after soaring 30% in late July on the the consequence of its mobile strategy which seems to be working well, the stocks surged.
The tremendous growth and turnaround in less than one year has led some stock analysts to be of the opinion that Facebook has turned its weakness in the mobile sphere into strength and it is paying back as the recent increase in stock prices is attributed to this factor.
Mark Zuckerberg, the CEO of the company has long been promising for building a mobile first company, now his message seems to be getting widespread acceptance as the share prices have increased 1.5 percent to $38.05, a closing price which has not been seen since the social-networking company’s IPO in May 18, 2012.
In fact, in September 2012, Facebook’s stocks fell to a record $17.55 and its IPO was considered one of the worst in a decade as the performance dipped to a great extent. However, this miraculous recovery shows that Mark Zuckerberg is on the path of becoming the richest person in the Forbes’ list of the richest persons on the earth.
Mark who is just 29 and his company is not even a decade old has already racked in a net worth of $18.6 billion and ranks at 37th in the Forbes’ list. Most of the growth in his income has been in the current year where it swelled 52%. Bloomberg Billionaires Index gives him preference over Microsoft Corp. CEO Steve Ballmer and Dell Inc. founder Michael Dell.
Amazing Recovery after Botched Debut
Mobile-ad business which was considered a liability at the beginning is now paying dividends as not it will used to propel sales to more than $16 billion by 2017. The mobile add strategy has won Facebook shareholders over, as they are confident that with it the company can even compete successfully with Google Inc. which is soaring in blitzkrieg speed.
Challenges Ahead for Facebook
The path is not smooth for Facebook as challenges from a fast-changing digital advertising landscape and dexterous competitors like Twitter Inc. are all set to eat into the space it is cashing on. Stock analysts expect that even after closing above the IPO price, Facebook stocks may ascend for some more time.
To contact the reporter of this story: Jonathan Millet at email@example.com