Facebook shares hit US$45 for first time
SAN FRANCISCO: Shares of Facebook Inc rose more than three per cent to a new high on Wednesday, valuing the world's No. 1 social network at US$106 billion (RM346.62 billion), as investors focused on its recent mobile advertising advances and the potential to expand ad revenue into new areas.
The stock touched US$45 at 1:50pm ET and briefly hit US$45.07 shortly after 2pm on the Nasdaq - highs not seen since May 18 2012, the day of Facebook's initial public offering (IPO). It closed at US$45.04.
The stock's new intraday high is the latest milestone in a remarkable recovery following a rocky Wall Street debut, in which traded at half its US$38 offering price at one point.
Chief executive Mark Zuckerberg, at a technology conference here on Wednesday, said the IPO process had made Facebook stronger by forcing it to better understand the various facets of its business.
"The second quarter was the turning point when a lot of their work over the last year with the newsfeed came through," said JMP Securities analyst Ronald Josey, referring to the format of Facebook updates that also carry mobile ads. The stock has risen 67 per cent since then.
"Mobile is very hard to get audience at scale and Facebook is proving that it's one of those places where advertisers can go to reach eyeballs."
Facebook has said it expects sales and user growth for its mobile apps to outpace its desktop website. Reuters