Social media giant Facebook has decided to hold an IPO. Since then, Facebook
(FB) the stock has been one of the favorite pics for investors looking for handsome
returns.
If we look at the Facebook stock price chart from May 2012, we can see a steady rise till July 2018 with minor swings.
It was in July last year that the Cambridge Analytica scandal broke, showing Facebook’s alleged breach of data and user privacy.
FB stock took a massive hammer to lose 33% of its value in a mere five-month timeframe. From July 2018 to November 2018, FB stock fell above the $200 level to $130.
However, the stock changed its trajectory earlier this year and has returned to make a steady move northward. Facebook has recovered almost its last year losses and is currently trading at $189.40 on Monday’s closing.
Such a stock performance clearly shows strength and resilience towards external headwinds. Facebook stock gives more than 400% return since IPO As we can see from our lifetime chart, FB stock had given steady returns to investors since its IPO in May 2012.
If someone invested $1000 on Facebook on May 18, 2012, the day it went public, it would be in the form of $4900. Price per Monday, October 28, 2019.
This shows that in the last seven and a half years, the Facebook stock has given about
500% returns to investors.
Over the past seven years, Facebook made some bold decisions that have consistently ensured the company’s growth.
Two major acquisitions – Instagram in 2012 and WhatsApp in 2014 – have catapulted Facebook to a strong position in the technology space.
However, the company has been facing a rough patch over the last year. Currently, the social media mogul is embroiled in controversies associated with privacy concerns and user data.
Facebook will release its Q3 results tomorrow on October 30.
Analysts are expecting some correction amidst higher costs. However, another report from CNBC shows that Wall Street is bullish on Facebook, expecting it to surge higher. It is advised that one must conduct thorough research before investing in these companies.
