Facebook stock’s having a good day

Well.  Facebook’s getting quite a bounce Wednesday after releasing better-than-expected quarterly earnings results on Tuesday.  The stock jumped more than 12 percent in late trading after the report, and it kept going.  As of mid-day Wednesday, it was trading around $23.63, up more than 21 percent from its closing price of $19.50 the day before.

That’s still almost 40 percent short of the company’s $38 IPO price, of course.

But after months of wallowing around at barely half the IPO price, analysts say the stock’s getting a boost from renewed signs of growth in Facebook’s ad business, including in the relatively untapped sector of mobile ads.

Another hiccup is looming, however:  Facebook could have several hundred million additional shares go on the market over the next month, as more early investors and employees are freed from lock-up restrictions on their stock.  CEO Mark Zuckerberg has pledged not to sell his shares.  But if there’s an influx of shares from other sellers, analysts warn, that could put a damper on the stock.

 

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