Zynga (ZNGA) Investors: Thanks Facebook!
Tweet
Share
E-mailGet Alerts ZNGA Hot Sheet
Join SI Premium – FREE
And it hasn't even IPO'd yet.
Zynga (Nasdaq: ZNGA) investors are thanking Facebook right now.
After suffering an admittedly slow-start out of the gate following it's IPO (who in the heck is going to play Internet games? Look at how much Facebook risk it has!), shares have ripped and are now one of the shiny spots in market movers for 2012. Before literally yesterday, Zynga wasn't anywhere near its $11 IPO level since launch in late November.
Streetinsider recently mulled the idea of Zynga fetching a market cap of at least $12 billion, about 33 percent better than its current level.
Today, the stock is adding to gains, up over 15-percent heading into Friday afternoon. Since the start of 2012, Zynga is up about 50 percent.
Not bad, but is valuation getting out of control?
Trading with a market cap of around $10 billion, Zynga is worth 50 percent more than traditional gaming giant Electronic Art (NYSE: EA) and is catching up with Activision Blizzard (Nasdaq: ATVI), although both these companies post numbers that dwarf the numbers Zynga puts up.
But hype is hype and with Facebook heavily reliant on Zynga and vice-versa, shares can continue their momentum train until investors can actually buy Facebook shares, which may not happen for at least a couple more months.
Zynga (Nasdaq: ZNGA) investors are thanking Facebook right now.
After suffering an admittedly slow-start out of the gate following it's IPO (who in the heck is going to play Internet games? Look at how much Facebook risk it has!), shares have ripped and are now one of the shiny spots in market movers for 2012. Before literally yesterday, Zynga wasn't anywhere near its $11 IPO level since launch in late November.
Streetinsider recently mulled the idea of Zynga fetching a market cap of at least $12 billion, about 33 percent better than its current level.
Today, the stock is adding to gains, up over 15-percent heading into Friday afternoon. Since the start of 2012, Zynga is up about 50 percent.
Not bad, but is valuation getting out of control?
Trading with a market cap of around $10 billion, Zynga is worth 50 percent more than traditional gaming giant Electronic Art (NYSE: EA) and is catching up with Activision Blizzard (Nasdaq: ATVI), although both these companies post numbers that dwarf the numbers Zynga puts up.
But hype is hype and with Facebook heavily reliant on Zynga and vice-versa, shares can continue their momentum train until investors can actually buy Facebook shares, which may not happen for at least a couple more months.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Nscale targets up to $3B in US IPO as soon as September - Bloomberg
- Hyve Solutions opens two Nevada manufacturing campuses, adding 3,000 jobs
- FTC files amicus brief challenging Amgen's Enbrel patent acquisition
Create E-mail Alert Related Categories
Momentum Movers, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
