Facebook (FB) is the Toast of Wall Street...Again
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Facebook (Nasdaq: FB) was the talk of the town Thursday following "blow-out" second quarter earnings results. The stock of the social media giant has not seen this much attention since its infamous IPO flop in May 2012. In its public debut, shares of Facebook priced to the public at $38 per share, opened at $42.05, and then went into a precipitous downward spiral - falling as low as $17.55. The IPO performance left a bad taste in the mouth of many main street investors, which were clamoring for, and in many cases given, a piece of the action. Many thought it was just the latest in a string of Wall Street fleece jobs - where the little guy is taken advantage of in favor of the big wigs.
Today, however, it is a different story. Shares of Facebook are up 27 percent, adding an astonishing $17 billion in market value. Also, at $33.60, shares are closing in on the $38 IPO price.
Using one word to describe why the stock is up some much today, it would be "mobile." Facebook's mobile ad revenue was $656 million in the quarter, nearly 50% above the Wall Street consensus of $450 million. Just one year into the company's mobile effort, mobile advertising has increased from zero to 41 percent of the company's total ad revenue.
In addition to the mobile strength, Facebook addressed worries that use among teens was declining. Facebook noted daily/monthly interaction from teen has been steady over the last year and including Instagram engagement and time spent had strong gains.
JPMorgan analyst Doug Anmuth said the results from Facebook could be "thesis-changing."
Despite today's 27 percent surge, analysts see more upside ahead, on what Topeka Capital analyst Victor Anthony is calling "well defined catalysts". Some of these catalysts include: monetizing Instagram, launch of auto-play video ads, monetizing Graph Search, a bigger push into e-commerce, and the potential for S&P 500 inclusion.
Today, however, it is a different story. Shares of Facebook are up 27 percent, adding an astonishing $17 billion in market value. Also, at $33.60, shares are closing in on the $38 IPO price.
Using one word to describe why the stock is up some much today, it would be "mobile." Facebook's mobile ad revenue was $656 million in the quarter, nearly 50% above the Wall Street consensus of $450 million. Just one year into the company's mobile effort, mobile advertising has increased from zero to 41 percent of the company's total ad revenue.
In addition to the mobile strength, Facebook addressed worries that use among teens was declining. Facebook noted daily/monthly interaction from teen has been steady over the last year and including Instagram engagement and time spent had strong gains.
JPMorgan analyst Doug Anmuth said the results from Facebook could be "thesis-changing."
Despite today's 27 percent surge, analysts see more upside ahead, on what Topeka Capital analyst Victor Anthony is calling "well defined catalysts". Some of these catalysts include: monetizing Instagram, launch of auto-play video ads, monetizing Graph Search, a bigger push into e-commerce, and the potential for S&P 500 inclusion.
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