LAUNCHPAD: Facebook share price rockets up 40% to its $38 flotation level

The social network's shares reached their highest point ever leaving naysayers eating their hats

by Gabriella Griffith
Last Updated: 27 Aug 2013
Silicon Valley is no stranger to turnarounds. But no doubt this one has got chins wagging. It’s been just over a year since Facebook’s disastrous IPO, which saw the share price tumble by more than half in a few short months - but recovery has been bestowed upon the social media giant. Its share price is now lingering a few cents below its $38 flotation price.

The company’s shares have been on an upward trajectory since it announced its stronger-than-expected earnings on 24 July. Investors ‘like’ Facebook again because of its triumph in mobile advertising, which now makes up 41% of total ad revenues.

Founder Mark Zuckerberg is no doubt over the moon having pledged to hold onto his shares until at least September 2013. What fortuitous timing. Perhaps now his fortunes have been replenished, he can afford to take his wife to classier establishments than McDonalds...and learn to tip.

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