Zynga's Red Hot IPO Could Set Gaming Stocks on Fire
Mark Gomes submits:Hot IPOs can have a significant impact on the valuation of existing public companies. For example, the recent Renren (RENN) and LinkedIn (LNKD) IPOs proved to be a boon for Quepasa (QSPA) shareholders. In the days leading up to RENN's IPO, QPSA shares nearly doubled. A few weeks later, on the day of LNKD's IPO, QPSA shares rose as much as 34%. In the coming days, Zynga, a leading social/mobile gaming vendor, is expected to file paperwork to go public. Judging by its last round of funding, its IPO could result in a $10 billion valuation. As was the case for QPSA, the media frenzy surrounding Zynga's IPO could send shares of publicly-traded social/mobile gaming vendors soaring. Among them are Glu Mobile (GLUU), Gameloft (GLOFF), Majesco Entertainment (COOL), and RealNetworks (RWNK). Glu Mobile has already been making headway on the strength of hot games like Contract Killer, Gun Bros, DeerComplete Story »
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