Investors who got into Facebook's shares when it was hitting rock bottom are pleased with the stock. But original initial public offering investors are still feeling the pain.
Despite the 63 percent rally from its low, Facebook stock remains far from its original $38 a share initial public offering set last year. The stock still needs to rally nearly 30% just to let the investors who bought the shares at the IPO break even.
There's been plenty of positive momentum for the stock lately. In its most recent quarterly earnings report, Facebook reported 18% higher net income of $426 million, or 3 cents a share. Adjusting for one-time charges, the company earned 17 cents a share.
Meanwhile, Facebook is apparently gaining traction with mobile users. As of December, the company was getting more active users accessing its site using mobile devices than over Web browsers.
Expectations remain somewhat muted. Low expectations can be good for the stock, since Facebook might have an easier time impressing investors. Analysts expect the company to post revenue of $1.4 billion in the current quarter, down from the $1.6 billion it reported in the fourth quarter, says S&P Capital IQ.
Google remains a challenge, as it may try to extend is near-monopoly in Web search.
But in a note to clients, Jordan Rohan of Stifel Nicolaus says the stock is attractive and may move higher as Facebook makes more money on mobile.
Still, most analysts aren't ready to call for $38 a share yet. They currently have a one-year target price of $33.50 on Facebook, on average, meaning it will need to top expectations by a wide margin to hit $38 a share anytime soon.
Most Popular Stories
- 5 Notable Hispanic Technology Executives
- Top Hispanic Tech Companies Push for the Top
- Tesla's Alt-Energy Future Aims for Massive Lithium-Ion Battery Production
- Rand Paul Tops Presidential Straw Poll at Conservative PAC Conference
- Russia, Crimea Discuss Referendum
- China Urges Malaysia Flight Emergency Response
- New Chat App, Yik Yak, Causes Problems for Students
- Gas Prices May Jump from Calif. Emissions Law
- Obama Meets with Ukraine Prime Minister Wednesday
- Visa, MasterCard Team Up to Focus on Payment Security