Facebook Shares Briefly Climb Back Above May 2012 IPO Price
Posted on July 31, 2013Facebook's stock briefly climbed above its IPO price of $38 earlier today. Shares have since falled below $37 a share. Facebook [FB] has been climbing since it reported better than expected for its second quarter last week.
Facebook's mobile advertising has been growing and is now 41% of its total ad revenue. An early concern for the company was that they could not monetize mobile users. Facebook also recently announced a Mobile Games Publishing pilot program, which will help developers distribute games and generate ad revenues from games. Facebook will take a cute of the revenues.
Facebook still has a big problem, which is that is may be very over priced based on its P/E. Facebook trades at a P/E of 168.77. By comparison, Apple has a P/E of 11.29 and Yahoo has a P/E of 7.6.
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