Facebook (Nasdaq: FB) stock has more than doubled this year, but can it get another shot in the arm with a new ad strategy?
Facebook (Nasdaq: FB) stock still has a lot to prove if it wants to win over value investors, but it took a big step in that direction Wednesday with the announcement of its addition to both the S&P 500 and S&P 100 Indexes.
Most chief executives of major corporations earn millions of dollars in base salary, but that’s not all they get (just take a look at how the highest-paid CEOs in America make their money).
Total CEO compensation includes perquisites, bonuses, and stock options, among other things.
In fact, the great bulk of CEO compensation does not come from base salaries. Even the highest CEO base salaries fall under $10 million. It’s all the other goodies that push total CEO compensation miles past $10 million.
After an ugly 15 months of trading, the Facebook stock price (Nasdaq: FB) has not only passed its $38 initial public offering (IPO) price, but it has more than doubled over the last two months and is up an astounding 85% year to date.
This is a syndicated repost published with the permission of Money Morning. To view original, click here. Opinions herein are not those of the Wall Street…
Facebook (Nasdaq: FB) stock is up more than 30% today as investors applaud the second-quarter earnings report released yesterday (Wednesday).
Investors were thrilled to see FB earnings improve from previous disastrous quarters, and their exuberance pushed Facebook stock above $30 a share for the first time since January.
But, before you think FB stock is now the hottest investment of 2013, take a closer look at what’s going on.
First off, some of the gains are very likely thanks to a short squeeze. Heading into the release, some 39,754,124 FB shares were sold short, making it currently one of Nasdaq’s most heavily shorted stocks.
Volume suggested a race to cover shorts was in play.
And despite the solid gains, Facebook stock still isn’t trading over its May 2012 IPO price of $38, a level not seen since the famously flawed debut.
“Bottom line to me is Facebook may prove to be a great short-term trading opportunity, but I remain absolutely convinced it has no place in a long-term investor’s portfolio,” Money Morning Chief Investment Strategist Keith Fitz-Gerald said. “Where’s Eastern Airlines today? Where’s Palm Inc.? Research in Motion (Nasdaq: BBRY)? AOL Inc. (NYSE: AOL)? Myspace?”
While some investors get lured into this Facebook exuberance, here’s why Fitz-Gerald warns against it.
Sure, Facebook Earnings Weren’t Bad…
FB stock opinion aside, there’s no question this was the best Facebook earnings report since the company went public.
The social media giant posted earnings of $0.19 a share, a nickel better than forecasts, and up from $0.12 a year earlier. Revenue climbed to $1.81 billion, also beating projections of $1.62 billion, and up 53% from $1.18 billion a year ago.
The big question on everyone’s minds was how the Menlo Park, CA-based company tackled mobile. Facebook was late to the mobile arena and has been playing catch-up since. It finally appears as though it’s making headway.
Mobile advertising revenue accounted for roughly 41% of Facebook’s $1.60 billion in total advertising revenue in Q2, up from 30% in the first quarter.
One of the most closely watched earnings reports comes after the close Wednesday when Facebook Inc. (Nasdaq: FB) earnings for the second quarter are released.
Wall Street analysts expect the company to post earnings of $0.14 per share on revenue of $1.62 billion, up from $0.12 per share on $1.18 billion in revenue from the same quarter a year ago.
After scouring the numbers, the key question will be how well the company is monetizing its massive mobile user base.
What really happened on May 18, 2012, with the botched IPO of Facebook Inc. (Nasdaq: FB)?
Missing amid the numerous stock market milestones and seemingly unstoppable rallies since the start of the year is Facebook stock.
One year ago, Facebook stock (Nasdaq: FB) made its trading debut in one of the most highly anticipated initial public offerings ever.