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

Debbie Allen On 'Fame,' Stage And Men In Tights

Debbie Allen won Fame for playing an iconic dance teacher in film and television. Now, she's getting new fans for roles on shows like Grey's Anatomy. She talks about the highs and lows of her career.
NPR

Bracing For A Battle, Vermont Passes GMO Labeling Bill

The Green Mountain State is poised to become the first to require GMO labeling. But a federal lawmaker recently introduced a bill that would outlaw state rules like Vermont's.
NPR

Is Drug Testing For Welfare Fair?

Florida Gov. Rick Scott's plan to drug test state workers and welfare recipients ran into trouble in the courts. Law professor Pauline Kim and reporter Curt Anderson discuss the drug testing battle.
NPR

The Ten Commandments In The Digital Age

From adultery to envy, is social media making it harder to honor the Ten Commandments? Paul Edwards of The Deseret News talks about its series on how the Commandments fit into American life today.

Leave a Comment

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