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Social Media Slipping - Zynga Down 40%, Facebook Down 8%
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http://www.zerohedge.com/news/play-virtual-farm-backstopped-default-delay-securities-launched-after-zynga-implodes
http://www.bloomberg.com/news/2012-07-25/zynga-misses-estimates-as-users-flee-social-games-for-mobile.html?cmpid=yhoo
Apparently, less people playing various "(fill in the blank) Ville" games from Zynga. Zynga is 15% of Facebook's revenue. -
So who's jumping in to buy some Zynga?
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Not me. Groupon down, social media all down after market.
Unintentional humor: Analyst ratings for Zynga:
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/07-2/20120725_znga_anr.png -
Facebook taking another hit right now.
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Reply to @Kenster1_GlobalValue: Facebook down 18% in about a day and a half, Chipotle down 25% or so in a week, Starbucks down 10% AH, etc.
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Josh Brown {The Reformed Broker} gives Zynga a drubbing:
http://www.thereformedbroker.com/2012/07/26/are-you-not-entertained/
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FB down another 11.70% today and Zynga still down another 2.83% today too --- while the rest of the market had another wonderful up day.
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My goodness - another drop for Facebook down to $20 now.
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Reply to @Kenster1_GlobalValue: Back of the envelope valuation calculation done around the time of IPO value the company at $16/sh. Today, it is probably lower. BTW, there has been an exodus of important employees after the IPO. I am sorry for those that bought at IPO price or higher.
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... or even lower.
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Wow, Zynga down another 19% after hours right now.
Groupon stock also took a major pummeling over the past year - are they nearing the bottom?
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http://blogs.marketwatch.com/thetell/2012/10/05/zyngas-game-business-now-valued-at-zero-by-investors/
"At Friday’s price, Zynga is now below even that threshold. An analysis by Doug Anmuth of J.P. Morgan found that Zynga has about $2.16 per share in cash and equivalents on its balance sheet, and the value of its San Francisco headquarters that it owns equates to about 30 cents per share. That puts the company’s cash-plus-real-estate level at $2.46 – or about 9% above the stock’s current value. Several other analysts noted the same, but stayed away from recommending the stock to investors as a value or speculative play. Ben Schachter of Macquarie wrote that “we would caution investors against bottom fishing until we see proof of execution and a path to profitability.”"
