Facebook investors finally in the black
FACEBOOK shares have risen above their original price for the first time since the company went public, in what was one of the most hyped initial public offerings of all time.
Shares in the social network touched $38.05 in pre-market trading yesterday. That was the first time the stock had gone above its $38 opening price, finally giving investors who bought at that time a chance to make a profit.
The stock has gained almost 50pc in the week since Mark Zuckerberg's firm posted its half-year results, amid optimism the site had finally worked out a way to make money from users who access Facebook on their mobile phones.
Facebook had been the highest profile company to go public in years when the shares finally started trading on May 18 last year.
The shares were initially worth $38 but quickly fell, as investors balked at what they deemed an overpriced company.
The share price soon fell to as little as $17, costing so called "retail" investors – another name for the regular punter – huge amounts of cash and a string of lawsuits have followed.
Yesterday's move, though, means investors who bought on IPO day are in the black for the first time.