NEW YORK–Facebook came within striking distance of its IPO value today as Wall Street cheered the social network’s latest moves in video advertising and gaming.
Facebook announced its foray into mobile gaming today with a program called Mobile Games Publishing. This platform allows Facebook to promote smaller games on its site to users and take a share of revenues generated in return. In a blog post heralding the arrival of this framework, Facebook said, “We are invested in the success of these games, and in exchange for a revenue share, we will be collaborating deeply with developers in our program.
Tech blogs were also reporting that Facebook was testing a new ad format in users’ home page or news feeds: video ads. Bloomberg reported that the new video ad format could start appearing to users in Fall, and that the social network giant was asking as much as $1 million to $2.5 million for a single day’s display to its audience of over 1.1 billion users around the world.
The gaming announcement and the video ads rumors served to propel Facebook stock to its highest since its IPO, serving as good news following up on the the company’s Q2 results which were announced last week and handsomely beat investor expectations.
At the end of trading day, Facebook’s stock (FB) was up at $37.63 a share, valuing the company at north of $90 billion in market cap, and just short of its $38 value at IPO.
Facebook appears to be making all the right moves, whether in mobile, gaming or video ads. The question is whether it will continue to deliver, and Wall Street for now seems confident that it will.