Facebook shares finally hit $38 - briefly

UPDATE:  Facebook shares continued to fall through the afternoon and closed Wednesday at $36.83, according to Nasdaq.com

If you happened to be one of those investors who were able to buy Facebook stock at its IPO price of $38 last year, you had a chance to finally break even on Wednesday, when Facebook shares briefly traded at that price for the first time in more than 14 months.

Of course, if you were one of those who got excited about Facebook stock on the day of the IPO, and placed an order during that brief window when the share price rose as high as $45, you’re still in the red.

On the other hand, if you’re Mark Zuckerberg – who owns about 485 million shares of Facebook stock – your net worth has increased by nearly $5 billion over the last week.

Facebook shares have been on a tear since the company issued a blockbuster earnings report last week, which showed the company has succeeded in building a thriving mobile advertising business. After coming close to the $38 price on Tuesday, they briefly rose as high as $38.31 on Wednesday before falling a little below $38 as the day wore on.

As everyone knows, Facebook stock plummeted after its IPO fizzled, and shares fell as low as $17.55 last September.

But investors seem pretty excited about the company’s future. And it didn’t hurt that Facebook has been making noises about expanding its advertising business further, with reports this week that the company will start selling TV-style video commercials later this year for as much as $2.5 million a day.

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.