Posts Tagged Stock
The Social Networking Giant, Facebook’s Stock today hit $25 for the first time since July!
Facebook stock opened at $24.94 a share on Monday and rose more than $25 in early trading, this is the first time the stock has traded above that price since the end of July.
Image courtesy of Flickr, deneyterrio.
SAN FRANCISCO: Yahoo Inc may re-evaluate plans for the cash it gets from a multibillion-dollar sale of half of its 40 per cent stake in Chinese Internet company Alibaba Group.
Shares of Yahoo fell 4.4 per cent to $15.30 in after hours trading on Thursday.
Yahoo, which hired new Chief Executive Marissa Mayer last month, said in a filing with the US Securities and Exchange Commission on Thursday that Mayer has started a review of the company’s strategy.
The filing said the review “may lead to a re-evaluation” of Yahoo’s previously announced plans to return to shareholders substantially all of the after-tax cash proceeds under the initial share repurchase from the May 2012 deal with Alibaba.
Under the agreement, Yahoo was to sell one-half of its stake in Alibaba for at least $6.3 billion in cash and up to $800 million in new Alibaba preferred stock.
“There was an expectation of getting that cash back, so I think there will definitely be some disappointment,” said RBC Capital Markets analyst Andre Sequin.
But he said that shareholders also expect Mayer, a former Google executive, to re-invest in the company’s domestic business to rejuvenate the struggling Web company.
As part of Mayer’s review, Yahoo said, she would look at the company’s growth and acquisition strategy, the restructuring plan launched by her predecessor, and Yahoo’s cash and capital allocation strategy.
Facebook Inc. began trading publicly on Friday following one of the most anticipated stock offerings in history. The initial public offering of stock priced at $38 on Thursday. It was at the top end of a projected range that Facebook had already increased just days earlier.
Although many investors had hoped for a big first-day pop, Facebook’s stock opened Friday at $42.05 and fluctuated between $45 and $38 throughout the day. It closed barely above its IPO price, at $38.23.
Here’s how Facebook’s stock has traded since the IPO:
— Friday: Closed at $38.23, up 0.6 percent from IPO price.
— Monday: Closed at $34.03, down 11 percent for the day, down 10 percent from IPO price
— Tuesday: Closed at $31, down 9 percent for the day, down 19 percent for the week, down 18 percent from IPO price