Is Facebook (FB) Getting a Graph Search Bump?

After lying dormant for months, Facebook (NASDAQ: FB) shares have made a nice push the last couple days. That the move comes just as the social network is rolling out its new “Graph Search” function is probably no coincidence.

Facebook introduced Graph Search back in January. The feature allows users to search their social connections through more specific filters such as interests, places and photos. The service has been in beta stage since it was introduced. In the coming weeks, it will be available to all Facebook users.

When first introduced, Facebook investors didn’t seem too excited about Graph Search. The stock hardly budged in the week that followed the company’s grand announcement, which included a cryptic invitation to the media to “Come and See What We’re Building.”

Now that the new product is finally being released, investors seem oddly intrigued.

Facebook shares are up 4% in the last two days, 3% of which came today. The move has pushed the stock to its highest level since late May, and is a rare bright spot for a stock that has fallen 12% this year.

Perhaps the reason Graph Search had more traction with investors this time around is because the stock is more beaten down now than it was before. When Graph Search was announced, Facebook shares were in the $31 range and had been rising for two straight months. Entering this week, the stock was just over $24 a share and has been getting pulverized since early May.

Facebook ain’t cheap. In fact, with a P/E of 552 right now, it’s much more expensive than it was six months ago.

Its recent slump, however, may have taken a psychological toll on investors who think the stock may have bottomed.

For now, “Graph Search” was enough to convince them to jump back into the Facebook pool.