Zynga stock continues to drop

Tuesday, 20 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.