Facebook (FB) stock gained 27 cents, nearly 1%, to close Thursday at $31.47 (still down 17% from its public offering price of $38). The stock, which debuted mid-May in a highly expected and controversial IPO, has been down on 17 trading days and up on 16.
Though investors initially hoped for a big “first-day pop,” the stock – which opened on May 18 at $42.05, and fluctuated between $45 and $38 to close barely above its IPO price, at $38.23 – collapsed during the following days (going as low as $25.52) prompting panic because of the risk of an eventual tech bubble 2.0.
But in the following days, Facebook was able to stage a comeback thanks to a string of announcements regarding new advertising tools and the input of some big advertisers – such as Ford and Coca Cola – which endorsed the social network’s marketing and advertising services after GM and JC Penney said they would drop them for being ineffective.
However, challenges remain for Facebook as an evaluation from Wall Street firms gave the social network’s performance mixed reviews, and the company is still dealing with dozens of shareholder lawsuits as a result of its botched IPO. In addition, Facebook faces scrutiny over its shift from desktop to mobile technology as the company hasn’t convinced investors yet of its ability to capitalize in its growing mobile user base. The big test will be later this month when Facebook has its first earnings as a public company.