Well, listen up now, all ye who delighted in the tumbling share price of Facebook stock after it hit the open market in May 2012 at $38 per share: It took a little over a year, the acquisition of Instagram, and a profitable second quarter this year bolstered by mobile ad sales, and Facebook shares closed at $37.63 after a high today of just a few cents shy of $38.
The news is vindication for Mark Zuckerberg and that dude at Morgan Stanley who was given much of the blame for setting the IPO price, after the stock quickly fell and hit a low last summer of $17.55. And it goes to show that the perceived value of the company, while taking some hits from various rumors in the last year, has some growth potential after all.
The Business Times reports that Facebook earned $656 million in ad revenue for the quarter ending in June, 41 percent of which was attributed to mobile ad sales.
The stock rose over 40 percent in value over the last week, and rose sharply Tuesday in heavy trading. It has never before come so close to the $38 mark set 14 months ago.