Legal News

Facebook Climbs out of its Pit, Surpasses its $38 Initial Public Offering Price
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Perhaps there was some swagger when Facebook passed its $38 IPO price last May, but things quickly sunk. Investors weren’t buying it. They weren’t buying that Facebook had a plan for marketing on the new markets, as users ditch their PCs and use the computer on their smart phones. Stock plummeted to as low as $14. But things have changed. Facebook has revolutionized their advertising on smartphones and such devices. Word of this came last Wednesday, assuaging investor’s doubts, thus boosting shares more than 40 percent, bringing them temporarily up above their initial price, temporarily, at a 1.2 percent increase at $38.08.

Wednesday’s good news – good news if you want Facebook to be competitive – is that it derived 41 percent of its ad revenue from mobile, $656 million of its $1.6 billion, as the Associated Press reported.

  
What
Where


What this means for Facebook users, who might care a little less how competitive the once “free” application was, is that 1 in 20 items in the news feed are ads. The screen is huddled and crowded with all sorts of ads, many that have used search features to narrow down the personal interests of the given viewer, so that, say, if he says he likes philosopher “Nietzsche,” he will get ads selling him “Nietzsche is Pietzsche” t-shirts on the side of the screen.

Whatever the case, Google currently dominates the market with such intrusions, earning 52 percent of the global $8.8 billion mobile ad market last year – and they are expected to grow to 56 percent this year.

Whether Facebook can garnish more of this pie remains to be seen. Mark Mahaney, analyst with RBC Capital Markets, notes that “Facebook was caught flat-footed by the shift to mobile. It took them four or five quarters to catch up.” But now “they appear to be set up as a sustainable high-growth business.” What this means, for the likes of Zuckerman, is that Facebook is coming in the right direction, but still has a ways to go.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Estate Planning and Trust Administration Associate Attorney

USA-CA-Woodland Hills

Woodland Hills office of our client seeks estate planning and trust administration associate attorne...

Apply Now

Trademark Attorney

USA-OR-Portland

Portland office of our client seeks trademark attorney with 5+ years of copyright experience. The ca...

Apply Now

Health Care Regulatory Attorney with 2+ Years Experience

USA-TX-Houston

Houston office of our client seeks mid-level healthcare attorney with 2+ years of regulatory, reimbu...

Apply Now

Junior Litigator/Associate Attorney

USA-DC-Washington

Washington, D.C. office of our client seeks junior litigator/associate attorney with 2-4 years of tr...

Apply Now

RELEVANT JOBS

Litigation Associate (Mid-Level) - Medical Malpractice - Garden City, NY

USA-NY-Garden City

Defense firm seeking mid-level associate for Garden City office to fill Medical Malpractice / Health...

Apply now

Attorney

USA-NV-Las Vegas

Prestigious Personal Injury Law Firm seeks an outstanding Attorney. Must be a Nevada licensed Att...

Apply now

Attorney

USA-TX-Beaumont

ASSOCIATE ATTORNEY CDA is seeking Associate Attorney to join the firm\'s Beaum...

Apply now

Legal Assistant- Bilingual

USA-NV-Las Vegas

Prestigious personal injury firm seeks superstar BILINGUAL legal assistant! Candidate MUST have...

Apply now

SEARCH IN ARCHIVE

To Top