Shares for the world’s largest social network Facebook has surpassed the initial estimated price of $38 and has advanced as high as $38.31, first time since May 18, 2012.
Ever since the social network company reported the better-than-expected earnings report on July 24th, Facebook shares have been boosted.
Facebook shares moved back from its high $38.31, to $36.80 at market close in New York.
The company has been supported by the innovations and fast growth of Facebook’s mobile advertising revenue, as it currently earns 41% of its total revenue from mobile advertising.
In May 2012, the social network floatation started with a disappointing start, as investors and shareholders worried over the company’s slow revenue growth.
The company share price dropped drastically to $18, with approximately $48bn cleared off from Facebook’s stock market value.
The founder of Facebook Mark Zuckerberg is now benefiting from the high demand in ads targeting smart phone users and tablet users.
Last week Facebook said that the figures for tablet and smart phone users rose to 819 million during the second quarter. The company’s revenue rose by 53% to $1.81 billion, exceeding analysts’ sales forecast of $1.62 million.
The world’s largest social-networking site intends to expand and create an additional source of advertising revenue by selling TV commercials on sites for up to $2.5 million a day.
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