Facebook Stock Price: Can Facebook Avoid The Same Fate as Yahoo, RIM?

Facebook Stock Price: For Facebook Inc (NASDAQ:FB) investors, there is nothing worse than the thought of the social networking monster ending up in the same boat as Yahoo! Inc. (NASDAQ:YHOO) and Research In Motion Limited (NASDAQ:RIMM). When looking back at the past 12 months, it is easy to see that each company has had their fair share of bad days, although things may be beginning to look up for the trio.

The key difference to be aware of, however, is that Facebook is newest entrant into the publicly traded marketplace. Despite the fact that all three have shown somewhat of a recovery over the past three months, it is Facebook that has the most to lose (and gain) going forward.

Since its disastrous IPO in May, Facebook Inc (NASDAQ:FB)’s stock price has been all over the place. That being said, a 54% climb since September has brought forth some optimism. Its current price in the $27 range is a far cry from its opening IPO price. Of course, this is much better than where things stood during the heat of summer.

Do you recall the days when Research In Motion (RIM) was trading in the triple digits? This was four years ago, but many investors remember it like yesterday. Despite a monumental crash over the past couple of years, things are actually looking up for RIM. In the past three months alone, it is up a staggering 65% to right around $11-$12/share.

Yahoo, much like RIM, has seen better days. Although it was once a $35 stock, it is currently hovering around $19. Fortunately for investors in this company, shares are up almost 30% since September.

Facebook hopes to avoid the same fate

Comparing Facebook Inc (NASDAQ:FB) to Yahoo and RIM at this stage of the game is not exactly fair. Although it has only been seven months since the company’s IPO, this has not quelled concerns relating to its mid-summer slump.

With its power in the mobile advertising space, there is hope that Facebook shares will continue to climb. Thanks to a strong mobile performance in the third quarter, Facebook was able to alleviate some of the stress concerning the company’s ability to transition its resources to the mobile market.

Craig Hodges, chief investment officer at Dallas-based Hodges Capital and recent buyer of 100,000 shares, was quoted in the Dallas Morning News as saying:

“The expiration of the lockup was a huge overhang with this stock, because people thought there would be a lot of selling pressure. But most of that concern has subsided now.”

With that being said, another key driver of bullish sentiment has been Facebook Inc (NASDAQ:FB)’s rumored entry into the e-commerce space, which notable tech analyst Gene Munster predicts will bring “$10 billion in commerce-related revenue by 2015.”

What are your thoughts on the immediate future of Facebook? Will shares continue to climb, or are you waiting on the sidelines until the company’s next Q4 earnings report? Let us know your thoughts in the comments section below.

Check back here for more updates on Facebook Stock Price.

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