Analysts expect just 10-cent rise above IPO price for Facebook
Analysts began covering Facebook’s stock Wednesday, and on average, they expect only a 10-cent rise above the stock’s IPO price over the next year, according to a report.
The social network giant’s stock is now being followed by 17 firms. Among them, eight firms gave Facebook a buy rating, including Morgan Stanley, its lead underwriter.
At the same time, eight others gave hold ratings while one firm gave Facebook stock a sell rating, according to Bloomberg, which compiled the ratings.
Facebook began trading on May 18 with an IPO price of $38. On its first day, it opened at a little more than $42 and at one point jumped as high as $45. But by the next day, the stock was already trading below its opening price.
The stock has dipped as low as $25.52, but since early June, the stock has been making gains and made its way above the $30 mark by mid June.
After closing at $33.10 Tuesday, the average estimate of $38.10 represents a little more than a 15% gain.
Just before its IPO, Facebook was the subject of concern regarding revenue from mobile and the effectiveness and use of its advertising in general.
Since then, the company has made a major effort to improve its presence in the mobile sphere by purchasing other companies, including Instagram, and releasing more mobile apps while also making it easier for advertisers to make mobile ad purchases.
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