Facebook shares went 7.7 percent up late afternoon Wednesday after CEO Mark Zuckerberg gave an interview to online technology media site, TechCrunch. The visionary was optimistic about the future of the company.
The shares hit the first biggest increase in the market value of the stock at $20.93, after the initial public offering in May this year. The stock tumbled to as low as $18 this month.
Zuckerberg indicated a number of tricks in the bag but was clear on certain topics. Starting with the disappointment of the stock in the market, he then shifted the barrels to the future, especially in the mobile business. He also said in black and white that Facebook has no plans of launching its own smartphone, however, it is a major mobile-based company now.
Over the last few months, more than half of the monthly and weekly users have switched to Facebook’s mobile apps, with a reduction in PC-based use. This presented the company with a challenge on the advertisements front.
Zuckerberg listed some of the accomplishments in regards to the recent developments. He mentioned that the Social Network rolled out its first mobile advertisement plan this summer and considering the initial constraints, it has been a success. The advertisements took a stab on iOS devices at first due to the lack of Adobe Flash compatibility.
He also point out the new and improved official app for iOS devices, with new features like photo streaming. The Android alternative is still in the making but will soon be rolled out.
The deep integration of Facebook into the iOS 6, Apple’s newest upcoming version of mobile operating system, is also worth mentioning. Facebook features are now integrated into default apps like calendars, notifications, phonebooks and messages. Moreover, the user can quickly launch Facebook features like status and others from other apps as well. Siri can now post a status on the user’s request as well.
“Overall, we see upside as Facebook users increasingly search for brands, places, and apps — inherently valuable commercial oriented queries,” Brian Pitz, analyst at Jefferies & Co. wrote in a research note. “But we won’t get too excited until we hear more details.”