New York:Facebook’s market value has exceeded $ 200 billion, making it one of the world’s largest companies by market capitalization. Investors are optimistic about the development of Facebook mobile advertising business.
Facebook shares rose 0.8 percent to $77.89 at yesterday’s close in New York,valuing the company at $201.6 billion, according to data compiled by Bloomberg. That made it the 22nd-largest company in the world, behind Verizon Communications Inc. and ahead of Toyota Motor Corp.
The stock has jumped 9.3 percent since July 23, compared with a 0.7 percent increase in the Standard & Poor’s 500 Index, after Facebook reported a 61 percent increase in second-quarter sales to $2.91 billion. Mobile promotions accounted for 62 percent of ad sales, up from 59 percent in the prior period.
The gains are a far cry from Facebook’s May 2012 initial public offering, when a lack of mobile revenue led to a plunge in its stock. Chief executive officer Mark Zuckerberg, the world’s 13th-richest person according to the Bloomberg Billionaires Index, has made ads on smartphones and tablets Facebook’s core business and is building on that foundation with a mobile network to spread the company’s ads across the Web and wireless devices.
This latest rally stems from their last earnings announcement, when they reported higher demand and sales numbers for their mobile ads,” said Jeffrey Sica, who oversees more than $1.5 billion in assets as president of Sica Wealth Management, in an e-mail. “If they can continue to grow their mobile ads, they will have a sustainable demand for their stock.”
Bureau Report
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