article gives perspective on facebook ipo compared to znga.
Article says FB is trading at about 27 times last year's sales (not public yet obviously) while Zynga is trading at 6.8 times last year's sales.
If Zynga is currently accounting for 14% of Facebook revenue... then Zynga could really POP when FB IPO finally goes public.
I know some people think there is more risk with ZNGA being dependant on FB and with competition from other social gaming companies, but Zynga is the leader in social games and I don't see that changing any time soon. I think Zynga is a good bet, even at 14$ PPS.
If Znga trades at 27times last years sales (unlikely) Znga would be 40$pps. We'll see.
"At $100 billion, the company would be valued at about 27 times last year’s sales, almost double the 14.5 times trailing 12-month sales at which professional-networking service LinkedIn Corp. went public in May. It’s almost triple the multiple of 9.8 times implied by online coupon-company Groupon Inc. (GRPN)’s IPO price in November, and four times social-gaming provider Zynga Inc.’s multiple of 6.8 times at its December IPO, Bloomberg data show."
The revenue isnt simular you only asume it is.. say FB put more click adds and increased its revenue does that mean Zyngas revenue went up? or Zynga decided to cutt games back on fb Does that actualy affect FB or are you speculating....there is 1000's of varibles that can come into play... and they dont share the same business you are mistaken...
they rely on each other for portions of their revenue. facebook is how many people come to find and use zynga, and zynga keeps people logging into facebook. they share customers.
advertising revenue is similar
I know your not talking to me. just because FB charges Zynga a percentage of its sales. doesnt mean they are in anyway one in the same....FB allows zynga to post its games on there site for a cutt of the revenue.. however they are no way size shape or form coralated business model wise or even finacialy...so why would they trade as such?
"If Zynga is currently accounting for 14% of Facebook revenue... then Zynga could really POP when FB IPO finally goes public."
Wait now this ananalist and you are set to get bombbarded here cause folks here claim there is no coralition between the two Co.'s.
So just because FB go's up doesnt mean Zynga will also now as the pumpers say.....
or is there seems longs cant quite make there minds up...