Zynga (ZNGA) Beating Continues, Facebook (FB) is only Slightly Better, and Ugly Stick Not Finished with Groupon (GRPN)

August 27, 2012 5:20 PM EDT
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Shares of Zynga (Nasdaq: ZNGA) traded lower again on Monday and are back near $3. Last week, desperate investors were excited to see shares of Zynga rally to $3.35, but the relative good times were short lived, and it is back in the dumps again today, along with fellow dumpster-divers Facebook (Nasdaq: FB) and Groupon (Nasdaq: GRPN).

All three of these stocks had IPOs within the last 12 months and all three of them have charts that look like the floor of a slaughterhouse. It's hard to decide which stock is worse, since all three of them trade on or near fresh lows.

Facebook shares have fallen less than the others, but that might just mean it has a longer way to go if it wants to win the race to the bottom.

Investors still owning these stocks are probably wondering if they can still be saved. It isn't impossible, but the fact remains the hype in these names is over and it is time for hard work. In terms of earnings and other fundamentals, these companies have everything to prove, and until they do, they will not be fun stocks to own. A recovery, if it is possible, is going take time, time, and more time – that or a miracle, and those are hard to come by on Wall Street.

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