After more than a year on the open market Facebook shares have finally returned to their IPO pricing.
Shares on Tuesday reached $37.63, just 37 cents below their original $38 offering and a 6% price per share increase on the day. The company’s share pricing opened at $38.22, the first time it traded above $38 since May 18, 2012.
News that Facebook would soon start selling TV-style commercial space helped push up Facebook share pricing. The social network expects to earn $2.5 million per day from the new video ads. The social networks share pricing was mostly helped by a financial report last week which revealed better than expected earnings.
Despite share prices over the last year Facebook has managed to fight its way back to $38 per share. In October Facebook stock hit an all-time low of $17.55. At the time Facebook CEO Mark Zuckerberg called the company’s mobile advertising problems a myth and promises the company was “just getting started” with its mobile push.
In an investor note on Wednesday Brian Wieser, a senior analyst at Pivotal Research Group, wrote:
“The results should put to rest many of the concerns that so many investors have had since the IPO, broadening the stock’s investor base … Fretting about Facebook as the next MySpace will probably go the way of MySpace.”
In the last week Facebook shares have increased by 40% while adding $25 billion to the social networks market cap.
Facebook still has a long way to go before it hits its opening day trading high of $45 per share but it definitely appears headed in the right direction.
Use the stock chart below to witness Facebook’s crazy price per share ride over the last year:
Do you think Facebook is currently worth $38 per share?