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Zynga, Inc. Message Board

  • bill2124 bill2124 May 12, 2012 7:43 PM Flag

    Explain the logic....

    behind FB's IPO having any direct effect on Zynga's share price? Keep seeing several comments on this (probably from pumpers) but no explanation as to why. BTW, am long in the stock but it's been along ride down to these levels.

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    • That's old news. It's been priced in.

    • As a surrogate for FB, but that may be remains to be seen, and could be too much of a stretch. I hope it does have a salutary effect on ZNGA, but I'm leary.

    • if facebook trades above $60, the company worth more than $160 billions. since 15% of facebook revenue/ad is coming from zinga, you do the math and tell me how much 15% of 160 billions worth.

    • We already saw the FB rally in February. 15% of FB revenue is already priced in. There's nothing new to be found out regarding the relationship between FB and ZNGA. Maybe there might be a slight bump in the price but ZNGA will continue along it's downward spiral afterwards. In fact, after FB IPO most people will dump because that's the only reason anyone is still holding this turd.

      • 1 Reply to f00kx
      • Haven't you notice ZNGA has fallen 50% from FEB-March high of $15.91? The price was priced in then, not now. Right now ZNGA trades at very attractive PEG, 1.31 for 22% of the next 5 years vs the S&P500 10% of growth only. The market is in correction phase, high beta names being sold EVERYWHERE. A successful FB IPO will make stocks like ZNGA attractive again. This is how market works!

    • (1)Successful FB IPO will lift the spirit of the market. The "risk-trade" will be back on thus beneficial for high-beta stocks like ZNGA.
      (2)It also send a positive light into social media space. ZNGA is the leader in social gaming. What else is there in social gaming, except ZNGA.
      (3)FB also stated 15% revenue/ad comes from ZNGA. It also said social gaming will have great growth. and that slowing is due to "seasonal factor".

      If FB stocks can excel with a weak Q1 &trade with high valuation, investors will realize ZNGA is a bargain.

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