Facebook, the company's stock on Tuesday to recover its $ 38 debut price of the hair for the first time since its listing in 2012, in the social networking company's efforts to wipe away from Wall Street's doubt a milestone in its business.
In the past week, the company's share price has risen more than 40% after the company reported quarterly results blowout show the progress of Facebook to build a mobile advertising business.
Facebook's shares climbed as high as 7% of the $ 37.96 in heavy trading day (Tuesday), in the fall before finishing the regular session $ 37.63.
Social network, with 115 million users, which in May 2012 initial public offering since the transaction or never more than $ 38.
Facebook's market value has halved in the months after the IPO issues, including large-scale internal sales revenue slowdown fears Internet company's stock on Wall Street quip.
"Most companies, the scale does not re-accelerate their growth rate, Facebook's an exception," Raymond James analyst Aaron Kessler said.
"I would say that they better shape today than they were in the initial public offering price of the stock is still below," he said. "
Facebook's options trading volume is crazy, Tuesday overall turnover 3.8 times, the recent daily average, according to analyst firm Trade Alert option. 694,000 calls and 300,000 traders bearish on Tuesday, communicate on Facebook.
The most popular choice is the Weekly $ 38 and $ 37 strike calls expiring Friday most traders expected gains in the coming days.
A player like $ 32.50 per week strike will expire on August 9 appeared to buy 15,000 times, only a dime, WhatsTrading.com options strategist Frederick · Ruffy said.
Facebook's recent success - a field, many of our competitors are struggling - to establish a mobile advertising and online services, an increasing number of daily users has won the respect of investors and their confidence in the future. This has fueled the shares, which is more than 50% in July rebound.
Facebook said last week its mobile advertising revenue grew 75 percent in just three months, since the third quarter of 2011, trouncing analysts since the goal, and to provide the company's strongest revenue growth.
Many analysts raised their price target $ 38 above the level of last week Facebook's quarterly reports.
Second Quarter Results "Facebook is how we perceive Street really is a game changer," Pacific Crest Securities analyst Evan Wilson said. "It is very close to a perfect quarter."
Facebook announced plans on Tuesday to help market and distribute mobile games social gaming network switching revenue generated by the shear, expressed the hope that the company can tap new business.
Many investors expected, Facebook on providing high-priced video ads in the coming months.
Erase doubts
Facebook's CEO Mark Zuckerberg's dorm room at Harvard University, founded in 2004, became the first American technology companies on Wall Street debut, the value exceeding U.S. $ 100 billion.
Facebook's IPO has been through eight years of rapid growth of the company, to become a social and cultural phenomenon. Instead, it has been destroyed by a series of transactions glitch appeared, followed by the company and its underwriters faced with smoked prices and accusations of inadequate disclosure of information.
May 18, 2012, Facebook shares opened $ 38 higher than the issue price of 11%. However, a series of problems plagued the Nasdaq Stock Market debut contribution to the shares in the stock market fell sharply after peaking around $ 45 that day. Receive $ 38.23 in one week, the price fell below $ 38.
In early September, Facebook's stock price bottomed out $ 17.55.
Investors cool reception to Facebook and other consumer Internet bubble, when debutant actress, such as the Groupon company Zynga company, Silicon Valley IPO put a chill on the train.
Pacific Crest's Wilson said, "" This issue has never been a lot of people go to the Facebook question is how much Facebook's revenue and profitability can be derived from this activity.
"There have been many people questioned whether Facebook will not significantly increase, but Q2 erase doubt," he said, referring to Facebook's business.
 



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