Facebook News: Facebook Stock Hits New High, Company Surpasses Amazon in Valuation
Facebook has come a long way since going public in 2012. Back then, analysts and investors doubted that the company would be able to cash in on web advertising.
Now, the social media giant is proving that is a highly valuable company with a valuation that surpasses Amazon, Marketwatch reported.
In 2012, Facebook saw its stock prices sink to levels as low as $18. Many thought the company's initial public offering (IPO) price was far too high. Facebook has been able to recover massively to its levels today.
Facebook's stock (FB) hit an all-time high of $110.65 after releasing its earnings report Wednesday. The company's market capitalization rose $15 billion and it reported a record revenue for the third quarter.
Monthly active users of Facebook reached 1.55 billion, according to reports from the company. Additionally, 1 billion users log onto Facebook daily.
Analysts saw the $4.5 billion revenue made by Facebook in the third quarter and started updating their price targets for the company. The average 12-month price target of 40 analysts for the stock is $122.73.
More than half of the analysts polled on Facebook's price target say it will rise. Piper Jaffray is highly confident in the Facebook stock, raising their price target from $146 to $155. Wells Fargo originally had a price target range of $115-$120 but have raised that range to $135-$140 for Facebook.
Analysts were pleased with advertising growth and mobile usage, but they are also excited for Facebook's potential to enter into new markets.
Facebook is currently used by one-seventh of the world's population, but use of the social network is banned in China, the most populous nation. Even with the ban, Facebook says that China is one of its biggest advertising markets.
Facebook says that Chinese companies sell products to customers outside the country and that they rely on Facebook to attract these customers.
Analysts are very confident that Facebook will continue growing and reporting solid earnings reports.
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