Facebook shares opened on Monday above $32 for the first time since July as anticipation about upcoming products and financial results underscored Wall Street's renewed confidence in the online social network.
Facebook will on Tuesday host its first major press event at its headquarters in Menlo Park, California, since its troubled initial public offering in May, triggering a guessing game among technology observers and online blogs about what it could unveil - everything from a smartphone to a search engine.
"There's a lot of speculation. Nothing to me seems to be that certain," Jefferies & Co analyst Brian Pitz said.
"If I were to bet, I'd think it was something that was ad-platform related. I'm not convinced on the phone," said Pitz, citing previous comments by Facebook's leaders including CEO Mark Zuckerberg that making a smartphone would be the "wrong strategy" for Facebook.
In an email to reporters last week, Facebook invited the media to "come and see what we're building" without providing details.
Some analysts said the stock's recent gains - shares are up roughly 17% since the start of the year - may have more to do with the company's upcoming fourth-quarter financial results, slated for January 30.
"The stock is up because they have driven a dramatic increase in the ad load of their mobile app which is giving investors hope that they exceeded expectations," BTIG analyst Richard Greenfield said.
Shares were down about 1.3% to $31.30 in mid-afternoon trading.
The world's No. 1 social network with 1 bln users, Facebook became the first U.S. company to debut on stock markets with a value of more than $100 bln. Its value subsequently plunged by more than 50% on mounting concerns about slowing revenue growth and the challenges of making money as users shift from personal computers to mobile devices.
Facebook surprised Wall Street in the third quarter by announcing that mobile ads accounted for 14% of its total ad revenue. Some analysts expect the company to report further growth in its nascent mobile ad business for the fourth quarter.
Founder Zuckerberg has said that mobile is the "most misunderstood aspect" of Facebook. But he has repeatedly poured cold water on rumors that Facebook would build its own smartphone to compete against Apple's iPhone and smartphones based on Google's Android operating system.
Still, many technology observers believe that Facebook is more likely to improve the search capabilities within Facebook than to develop a full-fledged search engine that indexes all the Web's content and competes head-on with search leader Google.
Among the other items that technology blogs and analysts speculate might be unveiled on Tuesday were new standalone apps for Apple's iPad tablet, new features to display video ads and even a new wing of corporate headquarters.
Some cautioned that expectations of a game-changing new product were likely to cause disappointment.
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