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Facebook Nears $38 IPO Price For 1st Time

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Facebook CEO Mark Zuckerberg speaks at an event at Facebook's headquarters office in Menlo Park, California, on January 15, 2012. Today, Facebook announced the limited beta release of Graph Search, a feature that will create a new way for people to navigate connections and search social networks. AFP PHOTO  Josh Edelson        (Photo credit should read Josh Edelson/AFP/Getty Images)

Facebook CEO Mark Zuckerberg speaks at an event at Facebook’s headquarters office in Menlo Park, California, on January 15, 2012. Today, Facebook announced the limited beta release of Graph Search, a feature that will create a new way for people to navigate connections and search social networks. AFP PHOTO Josh Edelson (Photo credit should read Josh Edelson/AFP/Getty Images)

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MENLO PARK (CBS/AP) – Facebook’s stock came within pennies of its $38 IPO price for the first time since its rocky initial public offering more than a year ago.

Shares of Facebook Inc. rose $2.18, or 6.2 percent, to close at $37.61 on Tuesday. The stock hit $37.96 in afternoon trading.

The world’s biggest online social network has been on a roll since it reported stronger-than-expected earnings on July 24. Investors are especially upbeat about its fast-growing mobile advertising revenue.

Facebook’s ability to grow mobile revenue was one of the biggest concerns in the weeks leading up to its IPO last year. Investors were worried that its ad business was not moving to mobile gadgets as quickly as its user base.

Facebook now derives 41 percent of its ad revenue from mobile advertising.

 

(Copyright 2013 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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