Zynga Stock Settles at $9.50 for First Trading Day

CommanderFrank

CommanderFrank

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On the first day of Zynga’s IPO, which is normally the day the stock dramatically rises making all of the owners instant gazillionaires, Zynga had no Zing. In fact, not only did the stock not take off, it actually lost 5% of its value over the trading day. Is this the first sign of the tech bubble losing its love affair with investors?

What happened? Usually tech-based stock IPOs are greeted, at least on the first day, with a lot of interest by investors.
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It could be that it was overvalued to start with or that it is a terrible company with little to no future.
 
Their poker app for the ipad is the most irritating damned thing I've ever seen. Alert after alert after alert concerning "free chips"
 
Perhaps it isn't some glamorous sounding tech bubble collapse (does everything have to be a bubble teetering on the brink of certain doom), but simply that potential investors saw no real future. Everyone who wants to click on a cow a few times a day is already doing so.
 
What happened? Investors were and are very wary, even with how cheap the stock is.

It was analyzed as being "Underperforming" and only worth about $7 per share. http://www.forbes.com/sites/ericsavitz/2011/12/13/zynga-before-the-ipo-analyst-takes-bearish-stance/

And I think many people saw this and the related articles: http://www.forbes.com/sites/insertc...explains-why-loyalists-are-leaving-the-brand/

Zynga made a few mistakes, not the least of which was trying to "bully" employees' unvested stock out of them or lose their jobs - that went viral; the fact that they're bleeding customers because of their heavy-handed in your face give us your money stunts and Mr. Pincus' grand announcement before the IPO that he thought the company could double its' paying customers. Well they tried (yes I play a few of the games and no they don't get my money).

Cityville is the I believe the biggest to blatantly try this on and what happened in the last week? over 500,000 lost customers - and that is only the number of people who uninstalled and blocked the app, not all the ghost towns. What they pulled in Cityville is making the rounds and that wouldn't inspire any trust in me as an investor to buy into their company.

I for one am very happy to see their IPO fall flat on its' face. Zynga Zynga'd themselves. Just hope the employees with stock were able to sell/dump fast as much as possible. Oh and yes, check glassdoor for employee reviews. There's another reason to not want to invest.
 
I feel sorry for the people at Zynga who thought all their unvested shares would be worth something. I'm they're all good programmers, accountants, and what not, but their company is shite.
 
this is a microcosm of everything thats wrong with Wall Street, greed is a hell of a drug
 
Nah, it's probably because all the investors are too busy playing <something>ville already. LOL
 
mt2e said:
"down 5% on the day. Apparently the only reason it didn’t drop more was a “stabilizing bid” by Zynga’s underwriters. Seriously? They can do that?"

http://www.forbes.com/sites/roberthof/2011/12/16/zynga-ipo-goes-splatville-what-happened/


stabilizing bid roflol
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Also, from the article:

What’s more, most of Zynga’s revenues depend not on sales of ads or physical products but on sales of virtual goods, such as trees and tractors in its signature game FarmVille. These items, which countless news stories misleadingly tout as “imaginary,” are no more imaginary than the 4,000 songs in your iTunes. But a lot of investors may be uncertain how long people will want to buy them–not to mention that a very small percentage of Zynga gamers account for the vast majority of virtual goods sales.
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Gotta love how he tries to claim that the items aren't imaginary. Yes, yes they are imaginary. A song on itunes is much more real. You see, a real person recorded the song, and performs them at concerts. You can make a backup copy of your song. The song isn't limited to once specific function inside of a game that you might not be playing in 3 months. Oh, if Apple somehow shut down all of their servers and closed their doors the music file would still be sitting right there on my HD waiting for me, how about that virtual tractor, would it be there if Zynga closed down their servers?

A virtual item in farmville is nothing like a music file from itunes. A music file does actually have some real value. The investors clearly saw through Zynga's smoke screen and hype. Their company is overvalued big time. The real value of Zynga is more likely in the $1.00 - $2.00 a share range.
 
Honestly I was into FrontierVille for about....3 days, never played any of the Ville games or ANY or Zynga game. The second it felt like I was being funneled into paying ANYTHING I quit.


Zynga provides no actual value in any of their products, its purposefully meant to be a cash grab EVEN on the front end....I mean the games themselves are equal to something I played on Sega Gen..I mean I even had Sega TV (WAY WAY WAY BEFORE its time)
 
Sorry I meant Sega Channel.....wow I cannot understate how ahead of its time that was......
 
FndTheRver said:
I feel sorry for the people at Zynga who thought all their unvested shares would be worth something. I'm they're all good programmers, accountants, and what not, but their company is shite.
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None of them HAVE to work there. Sure, you can be duped in to believing whatever you boss tells you. But when something smells fishy, it often is. It's not exactly a highly respected industry.
 
I know someone who works at Zynga and I can't help but feel that he's going to get screwed. Pincus comes off as a major POS in both his business practices and interviews and it seems like he's just another dollar away from taking everything he can and running off. My friend has definitely bought into the hype from the corporate mouth pieces, which is a shame, because this just all comes off as a huge get-rich-quick scheme with Pincus at the helm.
 
canna said:
Also, from the article:



Gotta love how he tries to claim that the items aren't imaginary. Yes, yes they are imaginary. A song on itunes is much more real. You see, a real person recorded the song, and performs them at concerts. You can make a backup copy of your song. The song isn't limited to once specific function inside of a game that you might not be playing in 3 months. Oh, if Apple somehow shut down all of their servers and closed their doors the music file would still be sitting right there on my HD waiting for me, how about that virtual tractor, would it be there if Zynga closed down their servers?

A virtual item in farmville is nothing like a music file from itunes. A music file does actually have some real value. The investors clearly saw through Zynga's smoke screen and hype. Their company is overvalued big time. The real value of Zynga is more likely in the $1.00 - $2.00 a share range.
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Books are imaginary. Especially fiction. It's just words on a page; data.

I agree that the guy who said those items "aren't imaginary" is a dope.
 
complexx said:
None of them HAVE to work there. Sure, you can be duped in to believing whatever you boss tells you. But when something smells fishy, it often is. It's not exactly a highly respected industry.
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No dude, you cannot flip the "your fault for working there" card. If you get a contract to receive compensation, you damn well can demand that compensation after you've done the work.
 
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