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Facebook’s Value Tops $200 Bil On Mobile-Ad Optimism
Facebook Inc. (FB)’s market value exceeded $200 billion to put it among the world’s biggest corporations, as investors bet on the company to capitalize on the future of mobile advertising.
Facebook shares rose 0.8 percent to $77.89 at yesterday’s close in New York,valuing the company at $201.6 billion, according to data compiled by Bloomberg. That made it the 22nd-largest company in the world, behind Verizon Communications Inc. and ahead of Toyota Motor Corp.
The stock has jumped 9.3 percent since July 23, compared with a 0.7 percent increase in the Standard & Poor’s 500 Index, after Facebook reported a 61 percent increase in second-quarter sales to $2.91 billion. Mobile promotions accounted for 62 percent of ad sales, up from 59 percent in the prior period.
The gains are a far cry from Facebook’s May 2012 initial public offering, when a lack of mobile revenue led to a plunge in its stock. Chief Executive Officer Mark Zuckerberg, the world’s 13th-richest person according to the Bloomberg Billionaires Index, has made ads on smartphones and tablets Facebook’s core business and is building on that foundation with a mobile network to spread the company’s ads across the Web and wireless devices.Photographer: Simon Dawson/Bloomberg
“This latest rally stems from their last earnings announcement, when they reported higher demand and sales numbers for their mobile ads,” said Jeffrey Sica, who oversees more than $1.5 billion in assets as president of Sica Wealth Management, in an e-mail. “If they can continue to grow their mobile ads, they will have a sustainable demand for their stock.”
By Crayton Harrison and Sarah Frier, Sept. 9, 2014, Bloomberg.com
Facebook Inc. (FB)’s market value exceeded $200 billion to put it among the world’s biggest corporations, as investors bet on the company to capitalize on the future of mobile advertising.
Facebook shares rose 0.8 percent to $77.89 at yesterday’s close in New York,valuing the company at $201.6 billion, according to data compiled by Bloomberg. That made it the 22nd-largest company in the world, behind Verizon Communications Inc. and ahead of Toyota Motor Corp.
The stock has jumped 9.3 percent since July 23, compared with a 0.7 percent increase in the Standard & Poor’s 500 Index, after Facebook reported a 61 percent increase in second-quarter sales to $2.91 billion. Mobile promotions accounted for 62 percent of ad sales, up from 59 percent in the prior period.
The gains are a far cry from Facebook’s May 2012 initial public offering, when a lack of mobile revenue led to a plunge in its stock. Chief Executive Officer Mark Zuckerberg, the world’s 13th-richest person according to the Bloomberg Billionaires Index, has made ads on smartphones and tablets Facebook’s core business and is building on that foundation with a mobile network to spread the company’s ads across the Web and wireless devices.Photographer: Simon Dawson/Bloomberg
“This latest rally stems from their last earnings announcement, when they reported higher demand and sales numbers for their mobile ads,” said Jeffrey Sica, who oversees more than $1.5 billion in assets as president of Sica Wealth Management, in an e-mail. “If they can continue to grow their mobile ads, they will have a sustainable demand for their stock.”
Read the full story: www.bloomberg.com
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