Facebook appears positioned for the future after big day yesterday
Friday, July 26, 2013 2:59 PM
Facebook Inc. shares rallied 30 percent yesterday, allowing the stock to book its best one-day gain ever, CNN Money reported.
Shares remain about 10 percent below the May 2012 initial public offering price of $38, but analysts are predicting that the social media company is on its way to reach that threshold.
Analysts are most impressed by Facebook's growing strength in mobile advertising. Facebook this past quarter generated 50 percent more in mobile ad revenue than what Wall Street was expecting.
The company's success in mobile advertising is providing a model for other social networking site providers such as Twitter Inc. and Pinterest Inc., according to this Bloomberg article. The company is benefiting from a user base that checks in several times a day and is willing to accept marketing messages in news feeds. Facebook's mobile ads generated 41 percent of revenue last quarter.
Meanwhile, founder Mark Zuckerberg's fortune increased by $3.8 billion yesterday, pushing his net worth to $16.8 billion, Bloomberg reported. The 29-year-old is now No. 42 on the Bloomberg Billionaires Index, ahead of Microsoft Corp. CEO Steve Ballmer and Dell Inc. chairman Michael Dell.