Another day, another record high for Facebook. This morning the social company ticked up around 0.6%, topping an up market, and re-cresting the $72 mark comfortably, a level that it barely tasted yesterday.
What’s driving Facebook? The larger markets are also broadly higher, but the company’s day is likely still driven by its positive analyst note yesterday. UBS raised its price target for Facebook to $90 per share, a roughly 25% premium on its current price.
Facebook, once beleaguered after a rough IPO, traded as low as $18 per share in the low points of 2012. The company is up nearly 100% since its flotation.
Despite slowing growth at Twitter, investors seem confident in Facebook, and by implication, its decision to buy WhatsApp; you don’t bid up shares in a company in the face of coming dilution if you are not in favor of the result of that dilution. In this case, a massive acquisition.