Facebook stock closes above ‘$40 per share’ for first time since its IPO
After JPMorgan's bullish report which said that social network Facebook is gaining traction both with mobile and desktop PC users, the company's stock pierced the `$40 per share' mark on Friday, for the first time since its May 2012 initial public offering (IPO).
With the Facebook shares closing above $40 per share on Friday, it is quite evident that the company's stock continues to defy its doubters. Since the IPO price of the Facebook shares was $38, some investors had expressed the apprehension that the $38 barrier will probably be a hurdle that will slow the company's stock from rising higher.
However, with the closing price of the Facebook shares on Friday being $40.55, the social network concluded the week in the best-ever position till now, since its debut on the NASDAQ.
In fact, in the ongoing year, Facebook shares have gained more than 50 percent, with the Friday rise of $1.99 taking the company's stock past the $40 threshold. With the Friday rise, Facebook's stock was only 10 percent shy of its highest-ever price of $45, which it touched briefly during the first minute of trading.
It was after a tumultuous 14-month post-IPO period that the shares of Facebook finally began trading in the high $30s. The price of the shares started witnessing an increase after the company revealed in its second-quarter earnings report that it has benefitted from users who have switched over from desktop to mobile.