Social media giant Facebook (FB) has reason to celebrate as FB stock rose $1.08 — 2.1% — closing Thursday at over $52, a new all-time high for a company who had a rough entry into the market.
The bump began after Evercore Partners earlier this week announced that it expected a price target of $60 on FB stock. By Wednesday, Facebook saw a 3.3% rise.
Evercore based its estimates and analysis on the new Facebook Instagram app — which was predicted to reap some $340 million in ad revenue by 2014. The photo-based app Instagram this summer added 15-second video options, which insiders say has to potential to be a launching pad for advertising.
In fact, Instagram will add sponsored images and videos in the coming months.
Recently, eMarketer stated that advertisers are likely to spend $9.5 billion for digital ad buys on social media worldwide, and Facebook hopes to take a large chunk of that.
FB stock is up 24% year-to-date.
The news is a good PR boost to a company that has recently been hit — again — with a wave of negatives after FB announced it was again changing its privacy settings to, in effect, weaken privacy. Facebook chief privacy officer Michael Richter announced recently that the social media giant was making a significant change to its privacy settings that will allow users you haven’t block to find your profile online.
Users can search your name and locate your profile — something previously that was not possible due to the privacy settings on Facebook that protected users from finding your profile if you so desired.