“A million dollars isn’t cool. You know what’s cool?” asked Justin Timberlake’s Sean Parker in the hit film The Social Network. “A billion dollars.”
Well, given that metric, Facebook shares are looking very, very cool.
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The company’s stock just hit a fresh record high, and at $110 billion and counting now sports a market cap that is greater than Best Buy’s, Netflix’s and Hewlett-Packard’s – combined.
That’s a lot of friends. But there is a much smaller number that investors should keep in mind: 1 million.
That’s the number of advertisers the company now has, according to Gina Sanchez of Chantico Advisors.
“They will continue to build a revenue base. They’re expanding into all types of advertising,” said Sanchez.
Still, the run in the stock has been nothing short of remarkable. Since hitting a low on June 6th, shares have more than doubled. Much of that move has been on the hope that the company can continue to grow its mobile advertising at its current torrid pace. That remains to be seen. But investors seem to be buying now and asking questions later.
“It's not just the stock's move that has been impressive,” said Enis Taner of Riskreversal.com. “The volume that has accompanied this advance has been incredible, too.”
So do the technicals back up the stunning rise in the stock? Click above to find out.
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