ByVlad Deshkovich:Zynga (ZNGA) has been creating casual games since its inception. Leveraging the Facebook platform that it was born on, Zynga was able to provide its content to a huge number of people on the social network. Memorable titles like Farmville served to catapult the stock to as high as $14.69. Investor sentiment has waned, however, and the stock is now worth a measly $3.17.
By Saibus Research:We are disappointed to see Zynga (ZNGA) struggle because we used to be huge fans of the company's games on Facebook. We used to be huge fans of the Mafia Wars game and because there were so many people who were playing that game as well as its other recognized games like Farmville and Texas Hold 'Em Poker (Zynga Poker), we made it a point to analyze and evaluate the company's IPO.
Shares of online social game maker Zynga plunged 13.3 percent and triggered a trading halt Friday as Facebook's IPO fell flat with investors.Shares in Zynga, which makes popular games used on Facebook and other platforms, were halted at $7.17, near where they started at the beginning of the week before a strong climb ahead of Facebook's market debut.Shares of other popular social media companies like Pandora, LinkedIn, and Groupon also tumbled with the Facebook listing: Pandora was off 5.2 percent, LinkedIn 1.2 percent and Groupon 5.6 percent.
By Zacks Investment Research:
After reporting lackluster fourth quarter results, hurt by higher game development costs, social game maker Zynga Inc. (ZNGA) is gearing up to turn publisher, much akin to its closest competitor Electronic Arts Inc. (EA).
Renewed interest in social networking companies was led by an earnings report by Facebook (FB); companies like LinkedIn (LNKD) and Zynga (ZYNGA) rose. Yet when a word cloud of Facebook's quarterly conference call is visualized, danger lurks ahead for Zynga.
ON MONDAY, news surfaced that a small investment fund, GSV Capital, had purchased $6.6m worth of private shares of Facebook, valuing the popular social network at $70 billion. The shares of GSV Capital, which are publicly traded, shot up 42% on the news, adding $14m to the fund’s market value. That suggests the stock market believes Facebook is worth roughly twice its current private market valuation.