Tomahawk, WI 9/13/2013 (BasicsMedia) – There are several reasons as to why Facebook Inc (NASDAQ:FB) continues to be loved and adored by Wall Street, quite unlike what you will see with other companies. Just after the Facebook’s IPO was concluded, the overriding belief was that it had been bungled. This led to a period when the public and investors alike treated this stock with a lot of caution, much like what they did with companies such as Myspace.com and Pets.com. It is clearer now that the initial anger has dissipated somewhat and that probably Wall Street’s love for FB was justified after all.

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Image is from www.emarketer.com

One of the reasons most analysts had given for their belief that FB stock would not do as well as the company may have reported, included the inability to make revenue from mobile ads. But there was a time when the industry fully believed that the mobile ads were only going to succeed in sinking FB as a company. However, this appears to have been successfully navigated and FB has even reported that its sales from mobile ads make up 41% of all its revenues. Facebook stock has now managed to reach an all time high of $45, thanks in part to its mobile ads turnaround.

FB Retains Its Position as the World’s Leading Social Media Network

The current data indicates that FB enjoys close to 16% of the mobile ad market. This figure is even expected to continue rising bearing in mind the company’s decisions to make its presence felt all over the globe. FB is of the opinion that further growth is still possible even in the current market conditions. A look at the chart above shows how the company’s mobile ad share has grown from zero in 2011, to around 5.35% in 2012, and the current figure of 16% in 2013. If you think that FB’s gain has been at the expense of Google, you would have to think again.

Has FB’s IPO Been Justified?

Facebook remains the world’s largest social media networking site. It enjoys close to 1.15 billion users every month. However, from what I have seen, the company went through a time when of great uncertainty regarding its future. None other than its founder, Mark Zuckerberg, has publicly stated that he feared employees would leave due to the poor performance of the company’s stock, and many people had even questioned his IPO decision. The investor climate in which FB had operated was tougher and quite incredulous than it had anticipated.

Effects of FB IPO’s Initial Poor Performance

FB has gone through a one year period when its IPO has been called into question by more analysts than it had expected. Its founder has stated that the net effect of the stock’s poor performance has been to make the company stronger than it might have been. Furthermore, FB’s poor performance has made companies such as Twitter, to think twice on whether an IPO is the best way to go right now. A year ago, FB didn’t see much good coming out of its mobile products, which now account for nearly half of the company’s yearly revenue.

It appears as if FB has made a turnaround in its fortunes, and as long as it continues putting its head down and working more on the products it currently makes, the future looks great.

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