Remember when Facebook stocks struggled to hover around $20 a share? Facebook, you have come a long way, baby!
This morning, July 24, 2014, Facebook stocks opened at over $76 a share, beating the record of $72 back in March 2014. Their shares increased 173% since since summer 2013. It’s also one of the most traded stocks on Wall St. today. While they’re soaring, other technology stocks have decreased nearly 20% since March. What’s the cause of this rally? Several factors contribute to this. Mobile ads are the fuel behind this record pace profit machine. Mobile advertising alone was responsible for nearly two-thirds of ad profits. Facebook offers more services than it used to. It has a video ad app. It’s newest acquisition, Live Rail, is expected to help with video promos. Facebook also acquired the What’s App and are rumored to start making headsets with Oculus VR.
There’s one more thing: more users. Facebook has 1.32 billion accounts. There’s 7.1 billion people in the world today. You do the math. The average US user spends 40 minutes a day on the social media website. Facebook CEO Mark Zuckerberg is involved with charitable ventures. One is getting Internet connection around the world. So these ingredients are taking Facebook from Wall St.’s laughing stock to Wall St.’s darlings in less than two years. Without sounding like an after school break special, this is perseverance, creativity, innovation and a never get up attitude. So congratulations to Facebook. Would you invest?