Thu, Oct 11, 2012 | 06:04 BST
Zynga worth absolutely nothing – analyst
Zynga’s stock is quite literally worth nothing at all, according investors and analysts.
J.P. Morgan analyst Doug Anmuth, as reported by the LA Times, estimates that Zynga’s total cash on hand, owned securities, and property are worth $2.46 per share.
At time of writing, Zynga stock is worth $2.35 which means investors consider stock in the company to be worth even less than its actual material wealth; it has no value whatsoever to traders.
Zynga’s stock dropped sharply at the end of last week after it lowered its forecasts; analysts don’t expect any improvement, with Sterne Agee’s Arvind Bhatia predicting “significant” layoffs over the next few months.
Zynga went public in late 2011 and pulled in $1 billion; its stock went for $10 a share before beginning a long slide from which it has never really recovered.