Shares of Facebook rose more than 3 per cent to a new high Wednesday, valuing the world’s No. 1 social network at US$106 billion, as investors focused on its recent mobile advertising advances and the potential to expand ad revenue into new areas.
The stock touched US$45 at 1.50pm in New York (1.50am HKT) and briefly hit US$45.07 shortly after 2pm on the Nasdaq - highs not seen since May 18, last year, the day of Facebook’s initial public offering. It closed at US$45.04.
The stock’s new intraday high is the latest milestone in a remarkable recovery following a rocky Wall Street debut, in which traded at half its US$38 offering price at one point.
Chief executive Mark Zuckerberg, speaking at a technology conference in San Francisco on Wednesday, said the IPO process had made Facebook stronger by forcing it to better understand the various facets of its business.
“Having gone through what I think most people would characterise as an extremely turbulent first year as a public company, I can tell you I actually don’t think it’s that bad,” said Zuckerberg, noting that his fears of employee defections and low morale due to the slumping stock price were overblown.
Zuckerberg, 29, who co-founded Facebook in a Harvard dorm room, also said he had rethought his previous view that staying privately held for as long as possible was the best strategy.
“In retrospect, I was too afraid of going public,” Zuckerberg said at the TechCrunch Disrupt conference.