Facebook shares reach new high
Facebook shares moving on up
Facebook share prices have reached a new high of $45.17 (£28.58) since filing for an IPO in February 2012, having previously fallen as low as $17.58 (£11.12).
This peak in price came as chief executive Mark Zuckerberg was speaking at a San Francisco technology conference, with the instantly recognisable billionaire speaking of the positive impact the IPO has had for the company. Zuckerberg stated that the initially disastrous IPO had helped the company to recognise the various facets of the business, and fully focus on the areas it most needed to work on.
The Facebook inventor admitted “In retrospect, I was too afraid of going public”, with fears over employee defections, low morale and user confidence mainly proving to be unfounded. Zuckerberg had long been wary about relinquishing any control of the company, but with this latest share price improvement valuing the company at $106bn (£67bn), it certainly appears to be a gamble which has paid off.
Wall Street analyst Ronald Josey commented on the significant recent improvements for Facebook, commenting “The second quarter was the turning point when a lot of their work over the last year with the newsfeed came through.” He continued by stating his belief that the increased number of mobile users was also a major factor behind the growth, stating: “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.”
Kleon West, business development director at theEword remarked: “Facebook has been working hard to improve their unstable share price, and this is the reward for all the effort they have put in to redevelopment. While they will have to continue to innovate to ensure this upward trend continues. The low of $17.58 will remain in the minds of many, this news could inspire new investors to purchase shares and keep the upward momentum going.”