News

Facebook IPO Peaks As Company Steamrolls Ahead

by Jenny Hollander

On Wednesday morning, Facebook shares finally hit $38 apiece. That's the same price the billion-dollar company launched them at when it entered the public-trading arena last May. Things have gone swiftly downhill from there, and for the last year Facebook's been plagued with plummeting stocks, trading glitches, and widespread backlash.

TIME called on Mark Zuckerberg to resign, and the Wall Street Journal described Facebook's first year as a publicly traded company as a 'fiasco.' Investors fretted about the company's poor mobile revenue, and its flagging potential as a platform for advertising.

As of now, Zuckerberg's officially turned things around. Last week, the company revealed earnings way above estimates, and between April and June this year, Facebook re-established itself as a strong advertising platform for investors. With over 40 percent of its revenue now coming from mobile ads, Zuck, hoodie and all, is making it clear that Facebook's back in the cross-platform advertising game.

This year, Facebook's profits from mobile ads are expected to grow fourfold , and start taking a serious chunk of ad revenue away from Google. It's planning television-style ads for its users — think of it like those YouTube ads that play before songs — and selling them for a sweet $2.5 million apiece. They're also developing games of their own, having split with Zynga (parent of FarmVille, CityVille, and a bunch of other games that won't stop popping up on your feed) last year.

And here's the cherry on Zuck's cake: Facebook is now officially drawing more prime-time viewers than any television network.

Late Wednesday, the company also announced embedded posts, which "let people add public posts from Facebook to their blog or web site. When embedded, posts can include pictures, videos, hashtags and other content. People can also like and share the post directly from the embed."

They basically look like an embedded tweet: