Facebook keeps world guessing over today's big news: back to $38 IPO level?
Facebook had the world's media guessing this morning as to what it would reveal after inviting reporters to “come and see what we’re building” at 10 am California time today (6 pm UK time) at its Silicon Valley headquarters .
Zuckerberg: Big surprise?
Analysts were "in the dark about what the company has in store," said the Wall Street Journal - but the share price has rallied to a six-month high nonetheless.
Current speculation covers a range of possibilities: new advertising products, partnerships or e-commerce initiatives, along with the long-shot of a “Facebook phone.”
Some analysts thought today's announcement would focus on mobile advertising, considered key to the company’s future.
Facebook shares jumped 9% between the announcement of the event and the close of trading on Friday, when they ended at $31.72. That's getting towards double its low point of $17+ and is up nearly 20% since the year began.
Wedbush analyst Michael Pachter said he didn't think Facebook would unveil anything big so close to its earnings report on Jan. 30."I have low expectations,” he told MarketWatch.
But he was one of the few. Topeka Capital’s Victor Anthony said that Facebook's " intriguing invitation" suggested the announcement could be “meaningful.”
“They know how volatile the stock is,” Anthony told MarketWatch. “I’m sure they want to get that stock back up to $38." That is last year's IPO figure.
"It’s a critical level for them, ” said Anthony.
Watch this space!