Facebook shares up after Zuckerberg appearance
Trading week sees 13% bump for embattled social media firm
Facebook Inc shares closed at $22 after regular Friday trading, up 6.2% on the day, adding $6.785bn to the market value of the recently troubled social media company. The bump is the culmination of a series of good trading days, chiefly attributed to a single 30-minute talk on Tuesday by one man: CEO Mark Zuckerberg.
In his first public appearance since May's dismal IPO, 28-year old Zuckerberg outlined the company's future money-making potential including the possibility of Facebook entering the search market. Since then the value of Facebook shares has risen by approximately 13%.
Analysts believe his comments at the TechCrunch Disrupt conference in San Francisco may have gone someway towards assuaging the lukewarm reaction to the initial public offering, although the current share price of $22 remains well below the $38 offered in May.
"People are starting to feel a little more comfortable," said Arvind Bhatia, an analyst with Sterne, Agree & Leach. "I don't think they're completely out of the woods, but it does feel like the sentiment is improving."
On Thursday, Facebook said its ad exchange tool was out of testing, and several advertising agencies reported encouraging early results using the service. Facebook Ad Exchange allows web-behaviour profiling, which marketing professionals can turn into targeted campaigns. The lack of any such capabilities may have been a contributing factor to the lacklustre performance of May's share offering.