Facebook stock hits a record high, since IPO
It looks like the social network's share price could be making a comeback as it reaches $41.94 per share. But, it might not be time to celebrate yet.
Facebook's stock price on Monday struck an all-time high since the company first went public in May 2012. At the close of the market, Facebook shares were trading at $41.34, which is an increase of 1.9 percent since Friday. Earlier on Monday the price reached $41.94.
While this is most likely welcome news to the social network and its investors, it might not be time to pop the champagne corks. Facebook shares were higher than this when it was still a private company and trading on the secondary market.
Facebook went public and started trading on the Nasdaq on May 18, 2012. When trading kicked-off, the social network's share price was set at $38 per share. Throughout that first day of trading, the shares topped out at $45 and then returned back down to $38.23. For the next several months, the price fell until it hit an all-time low of $17.73 in September 2012.
According to Bloomberg, the new uptick in Facebook share price is because of growing optimism that the company can make money off of mobile advertising. A report by eMarketer in April said that it expects Facebook's mobile ad revenue to skyrocket in 2013 with the company grabbing nearly 30 percent of the mobile display market.
To add to more mobile ad revenue, Facebook CEO Mark Zuckerberg announced last Thursday that he plans to get every person on Earth onto Facebook, which is a total of 5 billion individuals.
"I think there are some things in life that if you believe that it's such a big problem, you just stick your neck out and try to do it," Zuckerberg said in an interview with CNN on Wednesday. "A lot of people think it's going to be really challenging to connect 5 billion people, too. It is, but I think it's one of the big problems of my generation."