Short Sellers Winning in Social Media Value Crash (ZNGA, FB, SOCL)
Zynga, Inc. (NASDAQ: ZNGA) is not following logic right now, at least sort of. Andrew Bary defended the stock over the weekend in Barron’s in an article titled “Beaten-Down Zynga Is Worth a Look.” Apparently it was worth a look, followed by…
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Today we have seen that Bloomberg is talking about Zynga in a much worse light on the Money Moves features today. Expense per user is up, revenue growth per user is being shown as down, and revenue growth keeps contracting.
To show just how bad the moves have been, Zynga is down another 2.1% to $3.01 for a low on the day versus a post-IPO low of $2.97.
Facebook’s stock is down yet again by 1.6% to $23.33 and the question is boiling down to whether or not Facebook is setting itself up to challenge last week’s post-earnings and post-IPO low of $22.28. The analysts are not yet willing to defend it. That being said, until something changes there is just not a compelling story that Wall Street is buying yet.
The Global X Social Media Index ETF (NASDAQ: SOCL) is also down 1.45 at $12.29 on the trading day.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
