Facebook’s Back: Shares Top $38 IPO Price
It's been quite a week for Facebook (FB) CEO Mark Zuckerberg. First a better than expected earnings report which led Zuckerberg's personal fortune to jump almost $4 billion in one day. Today, Facebook shares traded above $38 for the first time since the stock began trading in May 2012. And of course, the only reason it traded above the $38 IPO price that first day was because its chief underwriter Morgan Stanley stepped in to keep the price high.
Related: Facebook Surges and Mark Zuckerberg Pockets $3.8 Billion
The Daily Ticker's Henry Blodget says investors worried too much over the last year: "Much ado about nothing. Here we are 14 months later, the stock's back at the IPO price, the company is killing it. We have a good future in mobile. This is another example to me of how absurdly focused everybody is on short-term movements."
"It's been a year of dead money." adds Aaron Task who bought the stock on the day of the IPO as an experiment.
Blodget says this is a good lesson to learn, and one investors can take to the bank: "If you pick good companies and buy them at reasonable prices... and you hang on for a long time, and things don't deteriorate, usually it works out okay in the end."
Related: Facebook Shares Soar After Earnings Blow the Bears Away
In other Facebook news, Bloomberg is reporting that Facebook plans to sell TV-like ads for as much as $2.5 million a day. This could be the company's first step in breaking the stranglehold of TV networks over advertising budgets. The ads would be 15-seconds long, and aimed at the nearly 100 million users who are checking their accounts during prime time hours. The Daily Ticker will have more on this developing story later this week.
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