Facebook reaches the $100 mark for the first time
Facebook (FB) is scheduled to report its 3Q15 earnings results on November 4. The Internet titan’s stock reached an all-time high of $103.56 on October 26 and is expected to achieve a price target of $125, per analysts from SunTrust. On October 23, Facebook’s stock touched the $100 mark for the first time in the company’s history. The increase in Facebook’s share price since January 2015 accounts for more than 30% of this price. The $103.56 mark translates to an increase of more than 170% in Facebook’s stock price from its IPO price of $38.
Facebook’s stock fell by 5.4% following the release of last quarter’s earnings. The 82% rise in the company’s expenses affected Facebook’s overall earnings in 2Q15, leading to the fall in the stock. However, Facebook reported a 13% increase in monthly active users, which was much more than reported by competitors Twitter (TWTR) and Yelp (YELP).
Both Twitter and Yelp reported disappointing 2Q15 results, and their stocks fell 14% and 25%, respectively, after the results. Both companies have been struggling to attract new users, as more and more mobile users are drifting away to sites such as Google (GOOG) and Facebook.
Yelp is looking for ways to compete with Google. There’s been a slowdown in Yelp’s traditional advertising, and mobile users are using Google to get information on local businesses.
To gain diversified exposure to Facebook, you can invest in the Technology Select Sector SPDR ETF (XLK). XLK invests about 4.3% of its holdings in Facebook.