There is light at the end of the tunnel for Facebook. After failing to generate much enthusiasm with the announcement of its partnership with Apple, the social network finally reassured investors yesterday with news about its upcoming advertising tool.
Facebook (FB) stock surged yesterday setting the company for its first weekly gain since the controversial IPO on May 18. The shares rose to $28.29 -- a 4.4% increase after three consecutive weeks of loses.
The company finally got a boost from its announcement of the upcoming advertising-bidding system, Facebook Exchange, an announcement investors took as a sign that Facebook is doing its best to expand its revenue options.
Facebook is also set to file a motion in Federal Court, in New York, to consolidate all the lawsuits resulting from failures to process orders during the company's initial public offering. Facebook's underwriters, Morgan Stanley, Goldman Sachs and JP Morgan, will join the motion.
Although Facebook had already set aside $40 million to cover broker losses, the motion would be the first time the company publicly acknowledges the lawsuits. This action could further reassure investors, potentially correcting the course of Facebook's performance as a public company.