Boston, MA 10/07/2013 (wallstreetpr) – Shares of Facebook Inc (NASDAQ:FB) is up 0.37% and is trading at $51.21. The 52-week price range of company’s stock stood at $18.80 to $51.60.
The market, after being apprehensive about the future of the company has again gained confidence, with the company moving ahead on its video ads. The company has, at the right time, realized the importance of bringing monetization to the company.
The social networking giant, despite being reported to reach stagnancy after saturation of its user base, has still posted a 55% increase in shares so far this year. Despite this, the company is optimistic of a further growth. Reports have been that advertisers are ready with their version of ads, and are waiting for approval from Facebook. This will then give way to posting video ads at one of the most successful social networking sites, which finds a major part of revenue earning from video ads.
The company has also realized the growing shift of users from PC to smartphones and tablets. This is the reason that the company has been promoting its mobile app recently. This has resulted in a surge in mobile advertising. This segment is expected to generate at least half of the advertising revenue for the impending third quarter. The increase may be a result of price growth in ads from mobile app installation, from $3 to $5 now.
The main reason for such a surge in share prices is the opportunity with the company in monetizing its “all famous” Instagram app. This will unleash new markets for the company, with an app which has found widespread acceptance and popularity among users. Moreover, the company has been vying for an audience measurement just like in TV. This has been an open challenge to video ads on TV, which has been the traditional platform for such ads.
