Facebook Inc (NASDAQ:FB) Shares Recover On Bargain Hunting
Facebook Inc (NASDAQ:FB) is trading up 4.30% at $19.87 after the social media network had hit its 52-week low of $18.75.
The new low in the last week had been created when the Company’s first lock up period had expired. The investors had on the very first chance of being freed of the lock up had started selling their shares in bulk in the market which pulled the share prices to new 52-week low. By selling out their shares at such lower prices compared to the IPO price of $38, the investors still had benefitted as the Company’s near future seems bleak to the wall street, analysts and investors.
After crossing the first lock up phase, the shares steadily and slowly moved up 4% to go above $19.50. The stock has been hit by worries about the company’s ability to grow revenue. After making an overpriced IPO at $38 the shares have plummeted 47.63% till date.
The Company’s active users have already fallen with the active use of the site by mobile users. The mobile usage of the site has increased manifold with the revenue from the mobile usage diminishing.
However, analyst at Capstone Investment have reiterated price target of $26 for the social media showing confidence on the Company’s core business and potential returns from new businesses. Revenue from ads has grown in the last quarter with revenue from the Company’s sponsored stories adding to the revenue source.