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Zynga worth absolutely nothing – analyst

Thursday, 11th October 2012 06:04 GMT By Brenna Hillier

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.

Thanks, EvilAvatar.

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4 Comments

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  1. NocturnalB

    So Zynga is about to die one big fiery death. Like watching a train wreck. The “QQ” on the pic was a funny touch by the way.

    #1 2 years ago
  2. Telepathic.Geometry

    Ya have to wonder if things’d be different if they’d managed their expectations from the beginning and kept the share prices reasonable. But yeah, it’s a shame nonetheless, another dev to bite the dust…

    #2 2 years ago
  3. TD_Monstrous69

    The biggest mistake anyone ever made was thinking that investing in a dedicated social games developer would be worth billions. Sure, there’s money in social games, but not as much as there once was (or at least for there to be a subsantial public offering as Zynga made). Zynga going public for as much as they did was a mistake, and hate to say it, they’re paying for their decisions.

    #3 2 years ago
  4. roadkill

    The “QQ” on the pic is a great touch!! I laughed my ass off. :D

    #4 2 years ago