Zynga Stock Falling After $1 Billion Initial Public Offering
FarmVille maker Zynga made an initial public offering for its company on Dec. 17, selling 100 million shares at $10 each, but its stock has been all over the place since it became available.
According to Business Insider, Zynga stock had fallen 4 percent from its $10 initial price, down to about $9.10, on the second morning of trading; then it closed at $9.05, a dip of nearly 10 percent.
Bloomberg is predicting even more volatility out of the stock. Analyst Paul Kedrosky thinks the stock will bottom out at $6 during the next six months, citing a weak market coupled with “weak fundamentals” from Zynga itself.
It’s not all bad news. In fact, Zynga’s IPO raised $1 billion, which makes it the biggest tech IPO since Google way back in 2004. Investors and traders might be causing the stock to fluctuate, but at least Zynga has some scratch to do something with. It might be a little too early to start shouting the social game maker’s doom.