Facebook Stock: Shares Surpass $100, Help S&P 500's Rebound
Facebook surpassed the $100 mark Friday for its stock price and analysts believe the company will continue to report positive numbers.
Facebook has been rising consistently since September 2012, with a 451 percent gain. That rally is the fourth best in the Standard & Poor's 500 Index, MSN Money reports.
"The big seminal event for Facebook was showing they could make significant money and turn themselves into a well-run company," Tim Ghriskey, who helps oversee $1.5 billion as managing director and chief investment officer at Solaris Asset Management, said by phone. The firm owns Facebook shares. "They've seen strong growth in advertising spending and viewership."
Facebook was close to the $100 mark back on July 21, but fell just a little short. Once August hit, a market-wide sell-off resulted in shares of Facebook falling 14 percent over three days and to a two-month low. Facebook shares rebounded and have since seen a 21 percent rise.
There are 109 other companies in the S&P 500 that are trading above $100. Analysts expect that Facebook will increase its mobile advertising and continue making profits.
Companies have been resistant to share splits in the stock market lately with institutional investors and exchange traded funds (ETFs) dominating purchases of stocks. Facebook shares have never split since the stock began trading in May of 2012.
Facebook and other tech giants Microsoft, Apple, Amazon and Google together make up almost 10 percent of the S&P 500.
Facebook is now the world's seventh largest company. The stock's recent rise has helped the S&P 500 bounce back from a 10-month low. Since the Aug. 25 low point, the S&P 500 has bounced back 14 percent.
"Facebook has really established itself as a force," Ghriskey said. "Reaching this level is a testament to the job management has done and the dominant product it is."
Shares of Facebook closed at $103.77 on Monday, up 1.55 percent.
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