Is Facebook's Stock Bouncing Back?
The story of Facebook's IPO is well known. They launched off the back of incredible pre-float hype and soared in early trading, only for the stock to then crash and burn as investors grew wary of the earning potential of the stock. This saw bankers Morgan Stanley criticized for their role in the flotation.
That seems to be the accepted story, but is it accurate? Business Insider reveal that the Facebook stock has in fact risen 20% in the last 2 weeks.
Two weeks ago the stock seemed to have hit rock bottom at just $25, a far cry from the $38 they launched at. Many commentators however believed there was still further to fall.
That however has not happened. In fact the stock has instead bounced back, returning to a level closer to their IPO price at $31.50 a share.
With those chasing a quick buck seemingly out of the equation, is this now a more reflective valuation for the company? Maybe, although of course they still face the same issues as they have done throughout the past month, including how to persuade companies to take ads rather than use the free tools available and how to monetize mobile, all the while trying to ignore the daily fluctuations of the stock market.
If you're interested in Facebook as a long-term investment however, now may be a better time to invest than during their post-IPO hype.