The value of Facebook's shares increased from $21.08/share at the commencement of trading in Nov. to $28 at the end of trading for the month. For Mark Zuckerberg, who holds 504 million shares, it translates to an increase in net worth of $3.48 billion.
Looking at the rising fortunes of Facebook stock from the perspective of net worth gains for its CEO highlights the significance of brightening fortunes of Facebook Inc, as it emerges from the nadir of its financial doldrums in September.
Inside Facebook reports that Facebook shares closed on November 30 at $28, up more than 16 percent in a week, and hitting a new high since July. The value of Facebook shares are on the rise and analysts are improving their ratings for the stock.
This is the first time Facebook stock is trading over $25 since July 26 when the company released its Q2 earnings report.
According to Mashable, when Facebook first went public at $38 per share in May, Zuckerberg's shares were worth $19.1 billion but in the months that followed, the value of the stock nosedived, to $17.55 in August, less than half the price at initial offering. The 28-year-old certainly had sleepless nights watching his net worth take the plunge from $19.1 billion to $8.84 billion in 3 months.
But since August, Facebook has been recovering from its teething crisis, slowly but steadily, and November has witnessed the fasted gains in the value of Facebook stock since the recovery began.
Mashable reports that two factors account for the impressive performance in November. The first being that the company's earnings report in late October was impressive, due mostly to significant growth in mobile monetization. The other factor was that the largest lockup period for stocks held by employees finally expired in the middle of November.
Many analysts had advised investors that Facebook stock would be volatile before expiry of the lock up period, but since expiry, Facebook shares have witnessed an upward trend
According to Mashable, as of Friday, Zuckerberg's net worth was $14.1 billion and it is projected to continue growing in December, presaging a happy Christmas for the 28-year-old.
As the value of Facebook's stock surges towards $30, analysts have begun speculating and projecting its growth path with many shifting up their price targets for the company's stock. Inside Facebook reports Bernstein upgraded Facebook from “market perform” to “outperform,” with a price target of $33. Piper Jaffray set a 12-month price target of $38 and BTIG Research upgraded shares from a sell rating to a neutral rating.
Mashable reports that analyst Arvind Bhatia of Sterne Agee, raised price target for Facebook stock from $26 to $32, while Topeka Capital raised their price target from $34 to $36.