News Column

Facebook Investors Showing Confidence

Dec 11, 2012

By Matt Krantz

invest stocks

Investors hated Facebook at $38 a share. But they seemed to love it under $20.

Many large investors looked askance at Facebook's whopping $100 billion valuation awarded to it at the $38-a-share initial public offering price. But after the stock went on a 50-percent-off sale at below $20 a share, some investors started to wonder if there's some value to be unlocked there.

Additionally, the company has been doing a better job trying to monetize its massive user base. The company is trying out ways to tempt its users to send gifts to each other over the social network.

Meanwhile, investors are also encouraged that Facebook is finding ways to get more traffic and revenue from users that access the site via their mobile devices. Concern that Facebook could lose users who gravitate to other social networks more geared for mobility was an issue weighing on the stock since its IPO. Several Wall Street analysts have been slapping optimistic ratings on the stock, giving it even more allure with investors.

The combination of finding ways to boost revenue, coupled by the fact the shares aren't nearly as pricey, has made Facebook a stock more investors are considering.





Source: Copyright USA TODAY 2012


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