Shares in social media site Facebook briefly returned to their initial public offering (IPO) price of $38 this week on the New York market, after initially plummeting when the technology company went public.
The turnaround shows investor confidence in the social media site is returning after Facebook shares touched $38.31 mid-week before slipping back again to $36.80 before today’s trading. This means the market capitalisation of Facebook stands at around $90bn once more with 2.44bn shares in circulation, and is a reflection on the improvement in mobile ad sales revenue.
The extra mobile ad sales will be a relief to the tech giant as it continues to belatedly move its customers off PCs and on to mobile or laptop access points, reflecting the general consumer move towards mobility and was a key reason for the almost 40% appreciation in its shares this week.
Facebook initiatives such as Graph Search, its move to try to rival Google by launching an augmented crowd sourced search engine, is also encouraging investors to believe that the company will develop other outlets to support its future advertising revenue streams.