Facebook shares have briefly broken through the $38 flotation level for the first time since the company’s disastrous initial public offering in May 2012.
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The share price has risen more than 40% since last week’s release of second quarter financial results showed an increase in crucial mobile ad sales, pegging Facebook’s value at just under $92bn.
Investor confidence was boosted by an increase in mobile ad revenue by 10% from the first quarter to $656m to make up 40% of the total ad revenue.
The share price hit a high of $38.31 in morning trading on Wednesday, before falling back to close at $36.80, according to the BBC.
Facebook's share price fell shortly after going public because of shareholder jitters about the social network’s ability to make the transition to mobile computing platforms.
Three months after the IPO, the share price had dropped to around $18, wiping $48bn off the company's stock market value.
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But Facebook’s investments in mobile features and the recent publication of better-than-expected financial results for the second quarter appears to be reversing the trend.
Investor sentiment was also buoyed by the fact that Facebook recorded a 51% increase in mobile users in the past year to 819 million monthly active users and 469 million daily active users on average for June 2013, which is 67% of the total average daily active users for the month.
In a bid to boost ad revenues even further, Facebook plans to introduce 15-second adverts to users' newsfeeds later this year.
The TV-style ads will be the first thing users see in their news feed each day starting automatically but without sound, according to the Telegraph.
Facebook is planning to sell the commercial space for as much as $2.5m daily, the paper said, citing “sources close to the social network”.