Facebook Inc. (NASDAQ:FB) has been taking huge hits to its stock price in the short-term, but now that CEO Mark Zuckerberg stepped forward and admitted mistakes and urged patience and confidence in his company and its stock, there are some who see not only a rebound from the stock but also a bounce that would move Facebook’s stock up 500 percent from its current price level in the next 24 months.
While many investors may have breathed a sigh of relief from hearing directly from Zuckerberg, Facebook Inc. (NASDAQ:FB) is still facing some short-term issues from analysts. One group announced that it was dropping its price target by 38 percent to $25 per share, as Needham made that declaration, noting that skeptics have been playing significant short plays recently, which make up about 7 percent of the company’s float.
However, after Zuckerberg modestly but optimistically handled a Q-and-A session at the TechCrunch Disrupt conference in San Francisco Tuesday afternoon, the long-term outlook for Facebook Inc. (NASDAQ:FB) seemed more positive in the aftermath of Zuck’s comments – where he admitted being a couple years late to mobile and told investors to give Facebook some time while it catches up to the mobile digital world – as there is one analysis that considers the potential of Facebook Inc. (NASDAQ:FB) as potentially a $100 stock by 2014.
Why? Simply because Facebook Inc. (NASDAQ:FB) has the user base of nearly 1 billion. It’s not that it’s trying to build a user base from scratch while moving to mobile; with the user base already existent, Zuckerberg said he has a group working to catch up on mobile plus another team working on search, which he says has the potential to be a huge opportunity.
In general, Zuck’s comments about Facebook Inc. (NASDAQ:FB) have been taken as encouraging by investors and observers, and have led to a quick bounce in the stock. The comments also seem to be encouraging some investors to take a long position in the stock. This may make recent investors like George Soros of Soros Fund Management look like they’re getting in at the right time.