logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Why the Candy Crush IPO Isn't a Zynga Repeat

  +Follow October 1, 2013 4:28PM
Share:
Tickers Mentioned:

The makers of the wildly popular online game Candy Crush Saga filed an IPO on Oct. 1, with analysts estimating the market value of the company could top $5 billion.

As Twitter seeks to avoid the IPO debacle experienced by their rival Facebook Inc. (FB) , King will look to avoid the disaster that beset Zynga Inc. (ZNGA) following their IPO. Zynga lost five percent on their first day of trading before going on to lose over two-thirds of their value in 2012.

Zynga was hit especially hard when their Facebook games were scrubbed out of user’s Facebook feeds after the company enagged in spamming practices. Zynga also failed to produce a hit to match the success of their flagship, Farmville.

King, however, has a few things going for them heading into their IPO that Zynga did not.

Candy Crush is a far bigger hit than Farmville ever was, and more importantly has been monetized ruthlessly, and incredibly effectively. Candy Crush players must wait 30 minutes after losing the game to restart – or, to bypass the waiting time, they can pay a small fee. To minimize further wait times, players can buy extra lives for a one-time fee ranging from $16.99 to $39.99.   

Take a quick guess what players enamored with the famously addictive game tend to choose. King rakes in a reported $850,000 a day from Candy Crush, culled from the 7.5 million active players of the game.

Equities Director of Research Francis Gaskins likes King’s IPO timing, citing Zynga’s recent improvement, market position and the fact that now is a bullish period for online gaming in general.

“In the last year or so both Zynga and Electronic Arts (EA) have moved substantially higher, so now is a good time for King to IPO, especially with 3 of the top 10 games on Facebook," Gaskins said. “Candy Crush has so much consumer acceptance that’s it probably will gap up on the opening with little regard to underlying fundamentals.”

(image courtesy of Flickr)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for FB
Aaron I. Ying
21 Sep 14 07:25:47
$FB with agresat volitle last week @ next week are new-all-time-highs possible @ but stay aware http://t.co/SeUxlJUxmb
HedgeChatter
21 Sep 14 07:19:50
Stocks on http://t.co/ekseL9HWxP with spike in news coverage: $BA $MSFT $BABA $GM $FB
Aaron I. Ying
21 Sep 14 07:18:55
$EURUSD <1.3030sell @ $XAUUSD <1292sell @ $AAPL >90$buy @ $FB >60$buy @ $USDCAD >1.09499buy @ $AUDJPY >97.12buy @ $DB >25.61€sell #forex
Uncia AM
21 Sep 14 07:09:48
eMarketer: Facebook's U.S. usage still growing, monetization outperforms http://t.co/fHwuuMgFCr $FB, $P
Stuart McMullin
21 Sep 14 07:06:02
@DeidreZune like $fb at these levels? Should continue to tick up I think...
Stuart McMullin
21 Sep 14 07:04:42
RT @DeidreZune: $AAPL's iPhone slogan-- suits $BABA BIGGER THAN BIGGER -- STILL BIGGER TOMORROW $FB $AMZN $EBAY $GOOGL http://t.co/RapVFj…
Stuart McMullin
21 Sep 14 06:59:35
RT @jefffocker: $googl and soc media leaders $fb and $twtr look sweet next week. Looking to break out
BUZZ Just-In
21 Sep 14 06:32:01
Access curated tweets- high relevancy, less spam- US Tech Giants http://t.co/kdZSg0jvwT $MSFT $TWTR $AAPL $FB $GOOG
Jeff Focker
21 Sep 14 06:27:27
$googl and soc media leaders $fb and $twtr look sweet next week. Looking to break out
A$$ lOrde
21 Sep 14 06:17:25
RT @romstocks: $WMT can't believe this.... @Walmart $BABA $FB $LNKD $TWTR @CNBC No wonder revenues are high...#romstocks http://t.co/em…
James.Gwon
21 Sep 14 06:16:55
eMarketer: Facebook's U.S. usage still growing, monetization outperforms http://t.co/BDrWgntVZX $FB, $P
Carolyn B Miciano
21 Sep 14 06:10:02
How to implement income strategies using credit spreads http://t.co/AFe5ZqZ4He $AMZN $FB $TWTR
S↕♏✪n™
21 Sep 14 06:09:42
RT @heuristicstox: $GOOGL $FB $TWTR $AMZN ..... ⏰ http://t.co/prWNxVYjGK
Steven Welch
21 Sep 14 06:05:14
@Fitzstock2004 how about $fb?
Social Alpha Inc
21 Sep 14 05:59:59
Significant activity on social media: $WAG $AAPL $FB $ALL $MSFT $TWTR. Trade on market sentiment @ http://t.co/K98K1bULdq #trading #stocks
Social Alpha Inc
21 Sep 14 05:58:31
Stocks trending on social media now: $WAG $AAPL $FB $ALL $MSFT $IGN $TWTR. Trade social sentiment @ http://t.co/ENYLmORRJH #tradeSentiment
12Stocks.com Tech
21 Sep 14 05:41:35
With Alibaba's big debut, 10 things to know.. http://t.co/P5P2upDzXk $FB #tech #stocks
Heath Sterling
21 Sep 14 05:41:29
RT @OhioSpotLight: Follow @stock_coach on $TWTR and Like WinningStockCoach http://t.co/gliA6mwlJi on $FB and see what YOUR money could do!
BUZZ Just-In
21 Sep 14 05:16:57
Compare brokers to find the right one for you- Social Media Stocks http://t.co/uhCJC31x41 $TWTR $LNKD $FB $GRPN $ZNGA #spreadbetting #cfd
Retail Trader
21 Sep 14 05:16:10
$FB had a very subtle breakout, I see upside to 85-90 area http://t.co/v0DEDZrVDl
ClayTrader
21 Sep 14 05:11:24
"Do You Suffer From this Trader Syndrome?" - episode #14 of Stock Trading Quick Tips - watch here: http://t.co/3Gx2Rb67vk $BABA $YHOO $FB $X
Michael Lamothe
21 Sep 14 05:00:58
ChartYourTrade's Ready List w/ notes, analysis, & daily/weekly charts: http://t.co/4gFizqxVBS samples include $MMP $ILMN $FB $NCLH $VIPS
Stock Wire
21 Sep 14 04:38:53
Facebook Inc (FB)'s Oculus Releases Lighter and Better Virtual Reality Headset ... $FB http://t.co/C9NixTuNzw
Sovereign Leadership
21 Sep 14 04:17:25
Apple / U2 It doesn't get any better than this! @iTunes http://t.co/AcsWWhhYlJ #IBDBlogs via @IBDinvestors $AAPL $FB $GOOGL $AMZN $EA
finsents
21 Sep 14 04:16:55
$FB:US 21Sep Positive News #Sentiment http://t.co/vspRpuOy1Y #Russell200
finsents
21 Sep 14 04:15:37
$FB:US 21Sep Positive News #Sentiment http://t.co/l9UgL47koT #SP500
finsents
21 Sep 14 04:14:27
$FB:US 21Sep Positive News #Sentiment http://t.co/92CqR8wfKV #NASDAQ
BUZZ Just-In
21 Sep 14 03:46:53
Don't ignore transactions costs- they add up- Social Media Stocks http://t.co/uhCJC31x41 $TWTR $LNKD $FB $GRPN $ZNGA #spreadbetting #cfd
Nitin Verma
21 Sep 14 03:31:59
RT @GoogleFacts: Facebook has now been down 10 minutes and lost more than $220,000 in advertising revenue. $FB
BUZZ Just-In
21 Sep 14 03:31:52
Why access a ticker when you could acesss a group of tickers- Social Media Stocks http://t.co/ajElRTb2Qc $TWTR $LNKD $FB $GRPN $ZNGA
$tockphile
21 Sep 14 03:11:57
RT @timothysykes: The Best Advice I Ever Got http://t.co/UZA74JdLQX good stuff $FB $TWTR
TechNews.org
21 Sep 14 03:07:15
Facebook (NASDAQ FB) News: Facebook CEO Urges Students to Be techies $FB : http://t.co/YpXySQtTSh
12Stocks.com Tech
21 Sep 14 03:06:08
The New Oculus VR Headset Makes The Virtual Seem Real.. http://t.co/nFb8FavIgf $FB #tech #stocks
12Stocks.com Tech
21 Sep 14 03:05:52
Facebook's Oculus unveils new virtual reality prototype device.. http://t.co/CKkjVicoQc $FB #tech #stocks
John Michael
21 Sep 14 02:31:30
RT @TheStreet: Facebook challenges Twitter with "Timely Topics" news feed tweak: http://t.co/XTANqq0QnQ $FB $TWTR
Russell Barbour
21 Sep 14 02:31:20
Wow Super_trades has made over $2 M ILLION in the last year!! check out his chart http://t.co/EfuNMUT9XP $VIMC $LIVE $NQ $HURC $FB
Alysia Sarkisian
21 Sep 14 02:29:18
RT @TheStreet: Facebook challenges Twitter with "Timely Topics" news feed tweak: http://t.co/XTANqq0QnQ $FB $TWTR
TheStreet
21 Sep 14 02:29:01
Facebook challenges Twitter with "Timely Topics" news feed tweak: http://t.co/XTANqq0QnQ $FB $TWTR
Eli Hoffmann
21 Sep 14 02:26:00
What Facebook, Herbalife And The Plague Have In Common http://t.co/ctWUvKsPEf $FB $HLF
Stockaholics
21 Sep 14 02:18:35
$ELRA closed up 288.89% on over 315 MILLION Volume! Get our new penny stock picks: http://t.co/qloC4OFNEn $FB $MDLZ $CELG
Evener Investment
21 Sep 14 02:10:31
RT @SeekingAlpha: What Facebook, Herbalife And The Plague Have In Common http://t.co/fMxyyIGiuq $AVP $FB $LNKD $NUS $TWTR $HLF
awolam
21 Sep 14 02:10:09
RT @SeekingAlpha: What Facebook, Herbalife And The Plague Have In Common http://t.co/fMxyyIGiuq $AVP $FB $LNKD $NUS $TWTR $HLF
charlie weijer
21 Sep 14 01:58:53
RT @SeekingAlpha: What Facebook, Herbalife And The Plague Have In Common http://t.co/fMxyyIGiuq $AVP $FB $LNKD $NUS $TWTR $HLF
Quantpost Technology
21 Sep 14 01:55:13
$FB News Alert: http://t.co/drE4ax1K1L Updated options view: https://t.co/yxuIFI1qBS All options views: https://t.co/gu71urtdg5
Seeking Alpha
21 Sep 14 01:55:09
What Facebook, Herbalife And The Plague Have In Common http://t.co/fMxyyIGiuq $AVP $FB $LNKD $NUS $TWTR $HLF
David Jackson
21 Sep 14 01:32:19
eMarketer: Facebook's U.S. usage still growing, monetization outperforms $FB $P http://t.co/iZp7AkVh0D
autry sams jr
21 Sep 14 01:24:39
RT @IBDinvestors: IBD 50 Stocks Setting Up, Including These 5 Medicals http://t.co/D0SkMvBraV $JAZZ $SLXP $GILD $FB http://t.co/QyxwpZuZEU
Aquila7
21 Sep 14 01:23:06
Facebook $FB how many $$ come from Obama crony spying programs - FB pushing illegals -92 mil America No work http://t.co/PN8yILgdRJ
Austin Jamison Kurtz
21 Sep 14 01:08:42
eMarketer: Facebook's U.S. usage still growing, monetization outperforms http://t.co/pdFzmzWoZJ $FB $P
Pot-stocks.com
21 Sep 14 01:00:44
Stay ahead of the game! Bookmark our simple RSS feed for updated Cannabis News. http://t.co/ZALMX0tUef #stocks #trading $mjna $fb $twtr
				
				
  +Follow October 1, 2013 4:28PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.