Facebook’s shares have reached an all time high with investors growing increasingly optimistic over the social networking company’s mobile advertising strategy.
Bloomberg (opens in new tab) report that shares in the company rose one per cent to $45.48 [£28.75] at 9:32 in New York and in the process surpassed the stock’s intraday high of $45 [£28.45] that was achieved on the first day of trading back in May 2012.
“There’s growing recognition that, ‘Hey, this is not just a fad -- it’s not going away, it’s becoming ingrained in people’s lives’. Their ads are becoming more effective. Advertisers are finding that’s a very attractive place to target,” said Martin Pyykkonen, an analyst at Wedge Partners.
Mark Zuckerberg, CEO of Facebook, turned round the company’s mobile advertising efforts by placing ads and promotions in amongst status updates and new picture posts. The success of the strategy is plain to see with a 61 per cent rise in advertising revenue in Q2 2013 to $1.6 billion [£1 billion], 41 per cent of which came from mobile ads.
Facebook’s transition into life as a public company has been far from smooth with shares dropping by over 50 per cent from the IPO price of $38 before recovering and rising to the current level.
Zuckerberg, talking at the TechCrunch Disrupt conference in San Francisco, called the first 12 months as a public company “extremely turbulent”, whilst at the same time making the company “stronger” as a result.
“I’m probably the person you would want to ask last how to make a smooth IPO. I was really worried that people would leave the company and that people would get really demoralized when the stock was down,” Zuckerberg added.
The impressive way Facebook has turned round its mobile advertising situation meant that eMarketer stated that it expected the company to treble its share of the mobile ad revenue market by the end of 2013.