Today, Facebook Inc.’s stock price has returned to the IPO price. Facebook Inc. (NASDAQ:FB) opened the market with a stock price of 37.96. This is the first time since settling down from its IPO debut of 38 on May 17, 2012 that it has reached these numbers. Last week the closing stock price surged from 26.51 to 34.36, and it is continuing to grow this week. The timeline of this five day jump (Thursday to Wednesday) may be a good indicator of Facebook reclaiming its market position as social stocks gained a thrust last week.
Worldwide mobile monthly active users (MAU) have increased 51% from the second quarter of last year. It has increased from 542 to 819 million worldwide mobile MAUs. Users in every region are increasing access to Facebook through mobile devices. Facebook sites key sources of mobile growth in India, Brazil and Indonesia in their quarterly report. While although users of mobile devices create daily traffic through their personal computers in addition to their mobile devices, Facebook expects rate of growth in mobile usage to exceed rate of growth through personal computer usage.
Facebook sites legal contingencies exhausting productivity as actions were filed in the federal and state court four days after their IPO for allegations of violations of securities laws and breaches in fiduciary duties. Although many have been dismissed by the federal courts or remanded to the state level, it is uncertain how long these unforeseen legal events will last.
According to the second quarter report filed with the SEC, Facebook Inc.’s financials have increased from the same time last year. Basic earnings per share (EPS) have rose from a negative eight cents to 14 cents. Revenue has increased from $1.2 to $1.8 billion, and net income has recovered from a negative 157 million to a positive 331 million. The company has been on the market for 14 months so it is important to remember that comparisons to the second quarter of last year do not represent the full quarter as Facebook opened a month and half into the second quarter.
Their stock price (NASDAQ:FB) has decreased throughout the year. The average closing price was 28.45 in the first quarter while decreasing to 25.62 in the second quarter. Currently, it has an average closing stock price of 27.49 for the third quarter. While their stock price has been decreasing, their daily active users (DAU) has been steadily increasing year over year. It was measured at 53 percent in June 2010 and has continued to increase year over year with a DAU of 61 percent in June 2013.
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