Newsbrief: Shares for social gaming giant Zynga dipped today after the debut of Scramble With Friends, the company's first mobile title since going public last month.
Shares closed today at $8.91 per share, down 3 percent from yesterday's close of $9.19. Shares were traded for as little as $8.82 during the day, nearing its all time low of $8.75.
Just yesterday, the company debuted Hidden Chronicles, a new Facebook-based "hidden object" title. With two new releases arriving just this week, the company's sudden drop on the NASDAQ was a bit unexpected.
Zynga officially went public in mid-December, and despite a rough debut, has thus far seen fairly consistent performance on the stock market.
zynga has dropped more than 10% in its first month. The numbers were jacked for the IPO. Good old fashion pump and dump. Watch for fakebook to drop the same on mutual funds heads any time now
I am convinced that the majority of investors simply "don't get" zynga. After all, here's a company that is making millions of dollars based on only 3% of their customers paying, yet investors prefer to companies that are higher profile but making zero money (Groupon). It really makes no sense to me at all.
Oh they get it but they don't think its worth the 8 billion dollar valuation the company claims.. The stock market is a perception game and most people don't think Zynga is worth that much, thus the downtrending stock price. If Zynga out performs in the next few quarters, more people will be inclined to believe it and the stock will rise..
