Facebook stock closes over $40 for first time since IPO

Matt Krantz | USA TODAY

Facebook stock continued to defy its doubters Friday by closing above $40 a share for the first time since its IPO.

Shares of the No. 1 social network have been on a tear this year, gaining more than 50%, including a $1.99 rise Friday to $40.54 in late-afternoon trading. Shares got a lift Friday after JPMorgan issued a bullish note on the stock, saying the company is gaining traction with mobile and desktop PC users.

Piercing the $40-a-share threshold is a significant move as it shows that the company is blasting away from the gravitational pull of its IPO price. Facebook initially sold its shares to the public in its initial public offering more than a year ago at $38 a share. Some investors thought that the $38 barrier would serve as a barrier that would slow the stock from rising higher. Facebook's stock has never closed above $40 a share.