Facebook Shares Return To IPO Pricing


Facebook Share Pricing

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:

FB Chart

FB data by YCharts

Do you think Facebook is currently worth $38 per share?


James Kosur

James Kosur has worked in the new media space for the last 10 years, helping many publications build their audiences to millions of monthly readers. He currently serves as the Director of Business Development at Business2Community.com and the CEO of Aven Enterprises LLC.

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