ZNGA will fight tooth and nail to defend the $2- threshold.
We are currently 45 cents from that number. The stock has come as close as 9 cents to that most critical point. $2- is a key technical and psychological point. It is halfway to the very magical $1- price when the higher ups at the Nasdaq exchange start making those unpleasant calls to ZNGA management. You could compare it to an individual investor receiving the dreaded margin call. ZNGA has already announced that it will purchase "up to $200 million" in company stock. It would be very interesting to know how much--the exact amount--of that capital has already been expended. I suggest very little, and the reason is that the comings earnings report will not be pretty. ZNGA will need that capital to defend the key $2- price support. In the short run, the company will prevent a breech of $2-. Longer term?????