Stocks of Facebook Inc (NASDAQ:FB) On A Rise – The Company Plans To End the Year with Record High Prices

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Facebook Inc (NASDAQ:FB) has witnessed a remarkable year when it comes to revenues and profits. The company is looking forward to ending the year with some record high gains in the prices of its stocks. The stock prices of the largest social networking company saw a boost due to its increasing advertising revenues from mobile segment.

The company has also expanded its market strategies process, thus extending the creativity to its videos and applications. The company saw an increase of 2 percent in its stock prices and closed at a total of $81.45. It is worth mentioning here that this was the first time since the initial public offering of the company that it had closed its stocks at such a high price. As for the year over year gain, the stocks of Facebook Inc (NASDAQ:FB) have seen an increase of 48.22 percent. On the contrary, the S&P index rose by 12 percent only.

The revenues from mobile segment have increased significantly, for a number of users have synchronized their accounts with their smartphones, thus enabling Facebook Inc (NASDAQ:FB) to generate lots of money by catering to the mobile advertising segment. Another reason for such high stock prices of Facebook can be the remarkable success of Instagram, a subsidiary company of Facebook. It is important to mention here that Instagram has beat Twitter in terms of users. Instagram has more than 300 million users as of now, whereas, the market experts are of the opinion that the user base will expand even further in the coming months.

Facebook Inc (NASDAQ:FB) acquired Instagram back in 2012 for a total of $ 1 billion.  Mark May, an analyst at Citigroup, is of the opinion that Instagram is worth $35 million right now.

James Cakmat, an analyst at Monness Crespi Hardt & Co., remarked that the gain in stock price partially comes from the growth of Instagram. The analyst gave the stocks a rating of ‘Buy.’ According to him, the company deserves this, for it has continuously seen a rise in its stock price since its first initial public offering. Moreover, the market capitalization of Facebook Inc (NASDAQ:FB) has also reached 227.8 billion, which also played a role in bringing the ratings of Facebook to a positive end.

James Cakmat commented on the user base of Instagram by saying that the ratings of the Facebook were also affected by this venture of the company. Instagram’s huge user base represents a milestone that Facebook Inc (NASDAQ:FB) has achieved, and the market expects the company to do the same in the coming years.

Marketers are paying high prices for fewer ads these days, but then again, the highly targeted ads together with high resolution and remarkable quality deserve that. Facebook has increased its advertising rates by 3 times during the last couple of months.

Market experts are of the opinion that Facebook Inc (NASDAQ:FB) will be able to gain 8 percent of the total share of global advertising market in the year 2015. Currently, the total global marketing share stands at 5.8 percent for the company.

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