Last week, Facebook’s stocks went above $50 a share for the first time. As you may be aware, Facebook’s stocks were originally offered at a price of $38 a share last year. Soon afterwards, these same stocks decreased in price and hit a low of just over $17 a share in September of 2012. However, in the past two months alone, Facebook’s stocks have more than doubled in value. Additionally, the stock has also increased a remarkably generous 85% since the beginning of 2013.Why Did this Stock Turnaround?
In the past year, Facebook implemented an effective way to monetize the social networking website with revenue from advertising. Specifically, Facebook decided to integrate news stream advertisements. Many advertisers took advantage of this new and effective way to advertise to consumers, and in fact are increasing the amount of money they spend on Facebook ads.
Will Facebook’s Stock Increase Even More?
Revenue from Facebook’s mobile revenue increased to 41% or just over $655 million in the second quarter of 2013 – up from 23% in the fourth quarter of 2012 and 30% in the first quarter of 2013. In fact,
Facebook boasts of more than one million advertisers that includes all of the major international brands. This total is more than double the amount of advertisers that the company had last year.
In addition, it has been reported that China will be lifting its internet ban on Facebook within Shanghai’s free-trade zone. It is rumored that Facebook may be made available to more of China in the future. As China is home to over 1.2 billion individuals, this market is a lucrative one indeed. That said, analysts are not expecting Facebook to raise in value too much in the near future and the majority of these experts believe that the stock will either remain about the same value or rise conservatively to $55 or $60 a share.