Zynga Soars on Facebook IPO Announcement (ZNGA, EA, LNKD, GRPN)
Last night’s SEC IPO filing from Facebook has lit a fire under some of the other social media stocks this moring. The biggest gainer is Zynga Inc. (NASDAQ: ZNGA), which Facebook noted in its filing produces about 12% of the…
Last night’s SEC IPO filing from Facebook has lit a fire under some of the other social media stocks this moring. The biggest gainer is Zynga Inc. (NASDAQ: ZNGA), which Facebook noted in its filing produces about 12% of the company’s revenues. Zynga, of course, gets virtually all its revenue from Facebook.
Other companies getting a boost include Electronic Arts Inc. (NASDAQ: EA), which is feverishly working on expanding its social gaming lineup, LinkedIn Corp. (NASDAQ: LNKD), and Groupon Inc. (NASDAQ: GRPN).
Zynga is also thinking about getting into real-money gambling. It’s for-fun Facebook Casino attracts about 7 million players a day, and the company says it has a pile of requests to offer real-money games from those players.
Shares of Zynga are up more than 16% at $12.35 after posting a new post-IPO high of $12.91 earlier today. EA’s shares are up nearly 8% at $19.86. LinkedIn and Groupon are just basking in the social media glow, up 5.6% and 7.5%, respectively.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.