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

From Medical Maggots To Stench Soup, 'Grunt' Explores The Science Of Warfare

When it comes to curiosity, science writer Mary Roach describes herself as someone who is "very out there." Her new book, Grunt, looks at some scientific developments that help keep soldiers safe.
NPR

Venezuela Is Running Out Of Beer Amid Severe Economic Crisis

The country's largest beer producer, Empresas Polar, halted operations because the government restricted access to imported barley. But the president has pinned the entire food crisis on Polar.
NPR

Donald Trump Attacks Federal Judge Involved In Trump University Case

Donald Trump continues to face lawsuits over his for-profit education company, Trump University. Trump accused federal judge Gonzalo Curiel of bias in one case, and said the judge, who is from Indiana, "happens to be, we believe, Mexican." NPR's Ari Shapiro talks to Washington Post political reporter Tom Hamburger about the case.
NPR

In Omaha, A Library With No Books Brings Technology To All

The privately funded, $7 million Do Space provides free access to computers, high-end software, 3-D printers, and laser cutters. It's a learning and play space, as well as an office for entrepreneurs.

Leave a Comment

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