Zynga’s Shares Jump with Another Step Away from Facebook

Michael Teague |

zynga facebook splitShares for online gaming company Zynga (ZNGA) popped just over 2 percent on Friday to $3.42 after a major revamp to the company’s website now allows users to log in for gaming without having to use Facebook (FB) as an intermediary.

The move is seen as a significant step towards independence for the company. Gamers can still access the site through Facebook if they wish, but the new interface provides the opportunity for players to create avatars that are not tied to the name on their social media accounts.



Zynga’s initial public offering on Dec. 16, 2011 saw shares priced at $10, and though there has been much anticipation surrounding the future and prospects of the company, the results have been more or less disappointing.  After reaching a high of $14.69 a little over a year ago on March 2, 2012, share prices have plummeted, hovering between $2 and $3 since August.

The move is a significant one considering that Zynga was at an early stage reaping about 90 percent of its revenue from its association with the social media giant, while at one point Facebook was getting 15 percent of its revenue from Zynga’s game offerings.

This began to change with increasing competition from other game companies, and more importantly, the increasing popularity of mobile and tablet devices with all of the free or cheap apps that these offer.

The stock’s promising open comes in spite of the fact the CLSA has downgraded it to “underperform”, with a price target of $3.50.

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. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
FB Facebook Inc. 143.68 -0.12 -0.08 12,382,002 Trade
NK NantKwest Inc. 3.31 -0.05 -1.49 184,576 Trade
ZNGA Zynga Inc. 2.79 -0.03 -1.06 5,321,303 Trade

Comments

Emerging Growth

Valuesetters Inc

Valuesetters Inc is a next generation technology company. The Company is focused in providing technologies and infrastructure-as-a-service (Iaas) to consumer through enterprise communications, entertainment, and game platforms.

Private Markets

Trustify

Trustify provides trust and safety in both the digital and physical worlds through our vast network of on-demand Private Investigators.By removing the large retainers and high hourly rates that traditional…

Mesa-Marshall 2 Well Project

MESA Resources ("MESA") is sponsoring the development of the two well direct drilling project -- "Mesa-Marshall #1-2". MESA, founded in 1992, is engaged in the acquisition, exploration and development of…