June 18 (Bloomberg) -- Facebook Inc. shares rose for a third day, paring declines since its May 17 initial public offering, as new advertising services at the largest social network reassured investors it is focused on boosting revenue.
Shares of the Menlo Park, California-based company climbed 4.7 percent to $31.41 at the close in New York. The shares have risen 15 percent since June 13, paring the decline since the IPO to 17 percent. The stock traded as low as $25.52 on June 6.
In the past week, Facebook has unveiled new products and services designed to enhance advertising sales, which make up more than 80 percent of revenue. The company unveiled a real-time bidding platform for third-party ads on June 13. A day earlier, Facebook and researcher ComScore Inc. released research that showed marketing on the social network is effective, countering another report that questioned its impact.
“Both of those things show that Facebook management is serious about growing advertising revenue,” said Michael Pachter, an analyst at Wedbush Securities Inc. in Los Angeles. “Just the idea that they’re trying is good enough for most investors.”
Facebook also is working on a location-based mobile-advertising product that will let companies target users with real-time data showing their whereabouts, said Carolyn Everson, vice president of global marketing solutions.
In a filing ahead of its IPO, the company said advertising sales growth wasn’t keeping pace with user growth as more users access the site from mobile devices. Facebook didn’t introduce a mobile ad service until earlier this year.
During the first quarter, revenue rose 45 percent to $1.06 billion, a slowdown from 55 percent in the December period.
At $31.41, Facebook closed near the $31.50 midpoint of the company’s initial proposed price range before its IPO. The company later raised the offering price to $38. The stock began trading publicly on May 18.
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