Facebook Sees Its Shares Hit $38 IPO Price | WAMU 88.5 - American University Radio

NPR : News

Filed Under:

Facebook Sees Its Shares Hit $38 IPO Price

It's been more than a year since Facebook's stock debuted at $38 in its initial public offering. But after a problematic start and an eventual slide below $20, the company saw its shares reach that initial price in early trading Wednesday, one week after it reported strong advertising revenue.

"Before Wednesday's opening bell, the shares rose as high as $38.05, before settling back down to $37.95," the AP reports. "On Tuesday, the shares closed up 6 percent after coming within pennies of the IPO price."

The shares bubbled over the $38 mark several times in the first hour of trading on the NASDAQ market, before hovering just below the mark.

Facebook's stock has found new momentum since last Wednesday, when it reported second-quarter revenue of $1.81 billion, an increase of 53 percent compared with the year-ago quarter. The company said its advertising unit brought in $1.60 billion, with mobile ads accounting for more than 40 percent of that figure.

Several analysts say that while the return to its IPO price is an important occasion for Facebook, the stock's rally might lose energy as some investors who bought into the company at its May 18 debut may sell their shares to break even, several analysts tell CNBC.

Stock analysts are being cautious in making recommendations on Facebook, with the $38 mark being called a psychological barrier.

"In what has to be one of the Street's odder price targets, Stifel Nicolaus analyst Jordan Rohan recently reiterated his 'Buy' rating on the stock and slapped on a target of $38.01," CNBC reports.

Others were less restrained. A headline on the CNN Money site this morning trumpeted, "Facebook's back!"

Copyright 2013 NPR. To see more, visit http://www.npr.org/.

NPR

Between The Laughs, South African Comedian Hopes To Educate

Trevor Noah, a new international correspondent on The Daily Show with Jon Stewart, turns a sharp eye on American policy — while answering the questions about world news that people are afraid to ask.
NPR

Will Environmentalists Fall For Faux Fish Made From Plants?

A handful of chefs and food companies are experimenting with fish-like alternatives to seafood. But the market is still a few steps behind plant-based products for meat and dairy.
NPR

Republicans Gather To Galvanize, Share Ideas At 'Freedom Summit'

On Saturday, prominent Republicans from across the country headed to Iowa for the annual Freedom Summit, which supports "pro-growth economics, social conservatism and a strong national defense."
NPR

Virtual Games Try To Generate Real Empathy For Faraway Conflict

A corner of the video game industry is covering the news through immersive experiences. One game transports players into the middle of the Syrian civil war.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.