Zynga’s stock recovers as Facebook IPO looms

After starting off the week at an all-time low, Zynga’s stock is beginning to rise again while Facebook’s initial public offering approaches.

The stock closed today at $8.22 a share, down from its opening at $8.75 but still notably higher than where its price was at the beginning of the week. Since Monday, Zynga’s shares have opened above their closing point from the previous day. The stock could be improving as Facebook’s Friday IPO draws near. The social network will likely be valued at over $100 billion with a stock price between $34 and $38 a share.

Facebook recently revealed in an S-1 amendment that Zynga was responsible for 15 percent of its 2011 income. When Facebook’s February S-1 showed 12 percent of its income came from Zynga, the developer’s stock rocketed up to over $14 a share before starting to fall back to previous levels. If the social network’s IPO is as big a success as many believe it will be, Zynga’s stock will likely see an even more dramatic share price increase.

Zynga’s stock still hasn’t taken off like many investors hoped it would when it began trading in December; shares didn’t return to their original price until late January. The stock managed to stay above $10 for February and March, but began a significant slide in mid-April, especially after the company’s Q1 earnings call on April 26. Although the company reported record bookings, it also reported a net loss of $85.4 million and shares dropped from $9.50 to $8.52 the next day. Shares continued to drop over the past two weeks, hitting an all-time low of $7.45 last Friday.

This post originally appeared on our sister site, Inside Social Games.

Marketing with Facebook Insights

Mediabistro Course

Marketing with Facebook Insights

Starting October 2, use Facebook’s analytics tool track and optimize your marketing efforts! Taught by the group marketing manager of social media at Microsoft/BingAds, Geoffrey Colon will show you how to measure key performance indicators and make your data actionable. Register now!

 

Leave a Reply

Get the latest news in your inbox
interested in advertising with inside facebook?

Social Media Jobs
of the Day

Web Producer, Joan Ganz Cooney Center

Sesame Workshop
New York, NY

Digital Director

Modern Farmer
Hudson, NY

Communications Coordinator

FASEB/APS
Bethesda, MD

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More
 

Our Sponsors

Mediabistro A division of Prometheus Global Media home | site map | advertising/sponsorships | careers | contact us | help courses | browse jobs | freelancers | content | member benefits | reprints & permissions terms of use | privacy policy Copyright © 2014 Mediabistro Inc. call (212) 389-2000 or email us