The social network giant had a horrid IPO initially but recouped the damage soon by adding almost 100% this year. The market value of FB has been rising by leaps and bounds over the last few months and currently stands at about $141 billion.
The ongoing boom in the Internet space especially in developing nations, significant software developments, and growing prospects in online and mobile advertising business made FB a clear winner in the recent past and the stock will likely continue to be on the bulish trend in the coming days. Some market researchers estimate that FB’s share in the online ad market is likely see a jump in the next two years.
If this was not enough, FB’s recent addition to the S&P 500 index inspired optimism around the stock in the market. FB gained about 5% on its first trading as an S&P 500 component. Some experts believe that the addition to the S&P 500 index and the consequent demand for it urged FB to extend its shares offering in the secondary market (read: Will Investors ‘Like’ these ETFs as Facebook Joins SP 500).
New Stock Offering
Following an eventful IPO in late 2012, Facebook Inc (NASDAQ:FB) is now gearing up for a secondary stock offering. The twist in the tale is that a large piece of Facebook’s secondary offering announcement of 70 million Class A shares is owned by the Facebook head Mark Zuckerberg (about 41 million).
Investors, if at all, doubtful over FB’s future should note that though the company’s chief opted for a stake sale, Zuckerberg will retain a sizable 62.8% voting right of outstanding capital stock, down from 65.2%. This reduction will help him to meet his tax obligations and not have much impact on his control power. As per sources, the latest offering is intended to fund working capital and other general corporate purposes. In any case, FB has a Zacks Rank #2 (Buy).(...)Click here to continue reading the original ETFDailyNews.com article: ETFs To Play The Facebook Inc (FB) SurgeYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
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