A 30 minute talk by Facebook chief Mark Zuckerberg has translated into $6.785 billion in additional market valuation for his company.
Facebook shares finished Friday's regular trading session up 6.2 per cent at $22 as Wall Street's confidence in the company continued to improve, in the wake of Zuckerberg's first public appearance since a rocky initial public offering in May.
The social networking company is planning to introduce a new advertising service that gives marketers improved ways to reach consumers on Facebook, which analysts claim has bolstered the company's share price.
"People are starting to feel a little more comfortable," said Arvind Bhatia, an analyst with Sterne, Agree & Leach.
They're not completely out of the woods, but sentiment is improving.
Zuckerberg's comments, in which he highlighted mobile business progress, suggested Facebook could enter the search market and expressed confidence in future money-making prospects, have improved the perception of the stock, said Bhatia.
Zuckerberg has a reputation for spending his time building the company from the inside rather than going around promoting it to investors.
On Thursday, Facebook said its nascent ad exchange was no longer in testing mode, and several advertising agencies reported encouraging early results using the service.
The Facebook Ad Exchange allows marketers to target consumers with pitches based on their past Web browsing activity, such as the websites they've visited - a standard online advertising technique that until now has not been available on Facebook.
The ad exchange hints at improved monetisation potential for Facebook, said Lazard Capital Markets analyst William Bird.
The world's number one online social network with 955 million users, Facebook has faced a rough debut since its May initial public offering. Investors and analysts have fretted about a sharp slowdown in its revenue growth. Shares of Facebook remain well below their $38 offering price.
The ongoing expiration of "lock-up" restrictions on Facebook insiders selling shares have added further pressure on the stock.
"I don't think they're completely out of the woods, but it does feel like the sentiment is improving," said Sterne, Agee & Leach's Bhatia.
The shares are up roughly 13 percent since Zuckerberg spoke at the TechCrunch Disrupt conference in San Francisco on Tuesday.
-
What is polymorphic malware?Explainer Polymorphic malware constantly changes its code to avoid detection, making it a top cybersecurity threat that demands advanced, behavior-based defenses
-
Outgoing Kaseya CEO teases "this is just the beginning" for the companyOpinion We spoke to Fred Voccola who remains a key figurehead at the firm as it enters its next chapter...
-
Meta to pay $725 million in Cambridge Analytica lawsuit settlementNews The settlement closes the long-running lawsuit into how Facebook's owner, Meta, handled the Cambridge Analytica scandal
-
Meta's earnings are 'cause for concern' and 2023 looks even bleakerAnalysis Calls for investor faith in metaverse tech only emphasise the worries that its investment strategy won't pay off
-
Microsoft and Meta announce integration deal between Teams and WorkplaceNews Features from both business collaboration platforms will be available to users without having to switch apps
-
Facebook is shutting down its controversial facial recognition systemNews The move will see more than a billion facial templates removed from Facebook's records amid a push for more private applications of the technology
-
'Changing name to Meat': Industry reacts to Facebook's Meta rebrandNews The rebrand attempts to provide a clearer distinction between Facebook and its umbrella company
-
Facebook's Oversight Board demands more transparencyNews Board bashed the social media giant for its preferential treatment of certain high-profile accounts
-
Facebook claims AI managed to reduce hate speech by 50%News The social media platform has hit back at claims the tech it uses to fight hate speech is inadequate
-
Facebook to hire 10,000 workers across the EUNews The high-skilled jobs drive is a “vote of confidence” in the European tech industry
