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Zynga stock continues to drop

Tuesday, 20th December 2011 01:06 GMT By Brenna Hillier

Business Insider reports investors are proving leery of Zynga stock, following the social publisher’s initial public offering last Friday. On the morning of its second day of trading, the stock had dropped 4% from its IPO price to $9.10, and closed at $9.05, almost 10% down. Bloomberg‘s Paul Kedrosky cited both poor market conditions and Zynga’s weak fundamentals for a prediction that the stock will drop to around $6 within the coming 12 months. Zynga’s IPO raised $1 billion, giving it the largest tech IPO since Google’s in 2004, but its first day of trading saw massive fluctuations.

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2 Comments

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  1. JWB

    It would seem that investors have grown increasingly skeptical of tech IPO valuations – and in this case, skeptical also of how low a percentage of the companies shares are being traded. I think in the long run, their treasure trove of game developers and savvy marketing will mean that even at today’s price, it will rise. However in the short term I predict it will fall to $8. All my thoughts here:

    http://www.prooftrader.com/symbol/ZNGA/1184/Facebook-games-are-here-to-stay-but-investors-are-wary-of-tech-IPO-valuations

    #1 2 years ago
  2. sg1974

    As I said about three months ago the owners, their advisers and their investment banks will find enough dumb-fucking-morons and greedy stupid people who’ll fail to spot yet another bubble and part with their cash for yet another castle built on sand. While the lemmings count their losses, the directors, the bankers and the accountants will be too busy laughing on their yachts on the Med to give a fuck.

    Next up: even more morons will line up to pile into Rovio, “valued” in the many billions almost entirely based on a single game.

    I’ll wager neither will exist in five years. Baltimore Technologies says hi: “worth” $13 billion in 2000 according to the market, and effectively $0 in 2006.

    #2 2 years ago