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.

Brandon Bailey Brandon Bailey (350 Posts)

Brandon Bailey covers Google, Facebook and Yahoo for the San Jose Mercury News, reporting on the business and culture of the Internet.