Facebook’s market value passed $100 billion today as investors have renewed faith that the company can monetize its vast mobile presence.
The stock is up 3% in trading today to more than $41 per share, the highest intraday level since the social network debuted on the public market in May of last year. In 2012, shares in FB are up more than 50%, much higher than the 17% gain seen by the Standard & Poor’s 500 Index so far this year.
Facebook hit a low of less than $18 per share last year as the company struggled to monetize its hundreds of millions of mobile users. However, last month a quarterly earnings report suggested that the company has figured out how to effectively monetize its mobile user base.
The world’s largest social network beat analyst expectations with a surprisingly strong fiscal quarter in July, which caused its stock to rise 17% in after hours trading. Facebook’s mobile advertising revenue led the charge, leaping from $375 to $656 million in just one quarter. The company also beat Wall Street consensus on earnings per share (19 versus 14 cents) and revenue ($1.8 billion versus $1.6 billion).
“Soon we’ll have more revenue on mobile than on desktop,” said founder and CEO Mark Zuckerberg last month.
Facebook added 45 million monthly active users last quarter. 700 million people use Facebook daily now.
Zuckerberg noted in July that Facebook’s mission is “to reach the next five billion people.”