Tomahawk, WI 9/09/2013 (BasicsMedia) – Investors were pumping their money into the shares of social networking major Facebook Inc. (NASDAQ:FB), which moved on to touch an all time high price on Friday. While the stock was poorly priced in its initial public offer one year ago, this recent surge in price is due to the effectiveness of the company to monetize its mobile users.

Ability to earn from mobile users

Recent increase in share prices of Facebook had all started when the company released its earnings report in July for the period that ended on June 30, 2013. The earnings per share reported for the quarter were higher than expectations and brought back faith amongst investors, making them feel that the company would prove successful in the field of mobile monetization. When the stock went for its IPO last year, the shares were poorly priced and the stock exchange was bleeding. As there was lack of clear guidance on how the company would monetize its mobile users, investors did not find it profitable to buy this stock of the social networking major at the time of its IPO.

However, all those investors who were disappointed from poor play in mobile figures are now getting in to make their investments. It appears that Facebook had proved its efficiency in retaining and effectively earning from the mobile users.

PMD Hearsay Raises $30 million in funding

In another development, the Preferred Marketing Developer at Facebook, Hearsay Social recently secured $30 million funding in the latest round of private financing. This financing was led by NEA and Sequoia Capital, who are already investors in the company. The total value of funding is $51 million and the company plans to utilize this capital for new investments in product development and to provide for expansion into the new international markets.

Hearsay Social is a Preferred Marketing Developer company and acts as part of Facebook’s attempts to increase the usability of services to the advertisers and marketers. Such PMDs are generally expected to build features and tools to make marketing platform easier for advertisers and marketers. As social networking major is still in the development stage of its marketing and advertising capabilities, it is expected that such PMDs as Hearsay Social would prove effective to speed up the improvement and provision of such services to the marketers.

The earnings perspective

While Facebook recently posted strong earnings, the stock is currently valued at 170 times its earnings and this still proves to be a sign of unfair pricing. It further proves highly difficult to value a company such as Facebook, as its entire business model is based on its potential to monetize its users. Given such constraints, it is quite difficult to decide whether to buy this stock just because it is presently touching new peaks every day. Investors will rather have to take a close watch on the chart movements of Facebook to make better decisions.

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