Sunday, September 16, 2012

Facebook Inc (NASDAQ:FB) Had 2 Major Developments This Week

For Facebook Inc (NASDAQ:FB) investors it was a good week, ending on a high note as the stock gained nearly 16 percent.

The triggers for the stock’s performance were also one that investors and analysts have been dreaming about for a long time.

We got to see founder and chief executive Mark Zuckerberg, actually in the flesh and blood - and not hidden under a hoodie - and to do him credit he answered all uncomfortable questions with a straight bat.

The other major development during the week which impacted the stock was the company's announcement that it was ready to launch its Facebook Ad Exchange that would allow advertisers and marketers to target customers with customised advertising based on their interests.

Has FB Found The Bottom and Ready To Move Higher? Find Out Here

But first let us see what Zuckerberg had to say in his first public appearance since his company went public in May, at a technology conference in San Francisco.

He admitted that the company's stock performance over the past few months had been disappointing and that the company cared about its shareholders.

He made it clear that its mobile strategy was being `misunderstood' and that the team was working on ways to monetise its mobile subscriber base.

He acknowledged that mobile was the future and that the company was committed to it. He did not actually give any forecasts about the company's growth but his comments served to reassure investors that the social networking site was working in the right direction.

That day shares in the company rose about 3 percent.

On Thursday the company said that its nascent Facebook Ad Exchange, which is still in the beta stage, was ready to go live.

The new advertising service tracks users' browsing activities online and routes this information back to advertisers on Facebook. The advertisers then target customers with relevant ads based on their interests.

Analysts said that the service hinted at improved monetisation potential for Facebook.

Facebook shares closed the week at $22, which is still some way below its IPO price of $38 a share. 

1 comment:

  1. Isn't it ironical that the CEO of this social network is a sociopath ?


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