November easily proved to be among the most productive months for Facebook and its CEO Mark Zuckerberg. The first day trading in November saw the stock of Facebook at $21.08 which shot up to $28 a share at the end of the day. This stock price is the highest for Facebook since July. As a result of this surge in the share price, Zuckerberg, who own 504 million shares of Facebook stock, gained about $3.48 billion.
When Facebook went public back in May, its stock was at $38 per share, and the net worth of Zuckerberg’s shares was $19.1 billion. In the succeeding months, however, the price of the stock dropped drastically and August saw the price at $17.55 per share. This drastic drop in the stocks brought Zuckerberg’s net worth down to $8.84 billion.
After August, the value of Facebook’s stock once again started improving and November proved to be the most successful month so far. The strong earnings report at the end of October, showing Facebook’s success with monetizing mobile, was the largest factor behind November rise in stocks. Another factor that played an important role was that the second and largest lockup period for stocks held by employees expired in the mid November, which had kept down the value of the stock for months.
With this rise in the stocks of Facebook, Mark Zuckerberg’s net worth now amounts to $14.1 billion and is expected to further grow during December. Thanks to the success of mobile ads and other sources such as Gifts service, analysts predict a further increase in the stock value. For instance, Arvind Bhatia, an analyst with Sterne Agee, raised the price target last week from $26 per share to $32 per share. Besides, Topeka Capital, also increased the price target from $34 to $36 per share. The stock values clearly show that Facebook and its founder would end this year at a positive note.