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Facebook Shares Heading Back to $38 IPO Price Says Kilburg


Facebook (FB) hasn't recovered from its post-IPO beating just yet, but the shares have made up quite a bit from the ground lost since the debut last May. After plunging from $38 to a low of $17.55, FB has rebounded back into the $30s, becoming a quietly hot momentum stock along the way.

Tip of the hat to Jeff Kilburg, the founder and head of KKM Financial who came on Breakout last November and made a bullish call on Facebook. In the attached clip Kilburg tells Breakout viewers what's driving the move and where he thinks it's going from here.

"We're seeing Zuckerberg take the hoodie off here," Kilburg says with authority. "He came in and delivered on mobile which he talked about." Kilburg is also fired up about Facebook's new Graph Search, a function that in effect allows users to shrink the size of their searches from the whole Internet to just Facebook.

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"So if your friends call up and they're looking for the best razor to shave their heads, bam, they come to you," is how Kilburg explains the navigation feature. The basic gist is Facebook plans to drive revenues by making a personalized search function based on your network of friends.

Privacy concerns and creepiness aside, Kilburg thinks the fate of Facebook's stock is to retake the IPO level of $38. "It's a magnet," he says. For the time being at least, it's hard to argue.