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August 26, 2013

Facebook Stocks Will Continue to Rise: Expert

Facebook’s stock continued its upward swing Friday to close above $40 for the first time, an indication the social networking company is finally on its way, experts are saying.

Mobile advertising success in the past two quarters has caused Facebook’s shares to gain more than 50 percent this year, putting the social network’s shares up to $40.55 at market close — its best performance since its Wall Street debut in May 2012.

Tim Seymour of told CNBC Friday night that Facebook’s stock is likely to continue its upward swing.

The stock’s growth rate combined with its low institutional ownership will likely serve to push shares higher, Seymour said.

“If you get that growth rate in the third and the fourth quarters, this stock’s going a lot higher,” he said.

“In terms of the momentum factor, this stock is, I would say, at a place where there are a lot of people who actually don’t own it still. I think there are a lot of shorts that have to be covered, and I think it’s a place where a lot of institutions are looking.”