Facebook share price jumped by 22% today in the NASDAQ stock market to $24, and is continuing to maintain the stock price rise throughout the day. You would recall that Facebook IPO launched a few months back at $38 per share and since then the stock continues to fall as Facebook shareholders get apprehensive about Facebook’s future earnings.
Facebook Share Price
But Facebook third-quarter earnings beat stock market expectations, and Facebook continues to show strong growth and earnings compared to last year. The third quarter Facebook earnings reveal that the revenue for the third quarter was $1.26 billion, an increase of 32% over last year. The Facebook advertising revenue generation was reported as $1.09 billion, and this represented 86% of total revenue and a 36% increase from the same quarter last year.
While the Facebook’s share price is holding at around $24, it is still much below the Facebook IPO price of $38. Facebook continues to have a strong growth and recently crossed 1 billion users, an increase of 26% since last year. Mobile monthly active users have risen to 604 million, increased by 61% since last year. Continued strong growth and earnings will help Facebook shareholders to gain confidence and continued Facebook performance and improved financials will surely boost the stock price. But will it reach the IPO price?
Did you buy Facebook stock from the NASDAQ stock market? Do you own Facebook’s shares? Are you going to sell Facebook shares or hold them?