Zynga Stock Drops Below IPO Price Within Minutes Of Breaking

Tyler Durden's picture

The IPO "flip" now has the same attention span as everything else in the market. After pricing its IPO at $10, and breaking well above, even hitting $11.50 momentarily, the stock is now trading at $9.51 and probably about to be halted within minutes of first seeing public trade. Another epic win for the GS-led underwriting syndicate. As a reminder - if Goldman is selling you something, don't buy it. And who could possibly think that virtual farms aren't real cashflow positive?

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Hard1's picture

Farmville Bitchezzzz!!!....Equity 400 MM Income $200 on their best year as that stupid game fades away.....Market cap 6.7 billion.   Management so desperate to cash in that they IPOed on the first market uptick of this month

Pladizow's picture

If you are too blind to see that this type of activity marks the end of the ponzi, then you deserve what you get!

Ahmeexnal's picture

You read it first on ZH last week: much touted eurozone 26 country agreement falls to pieces as constitution in most of eurozone countries PROHIBITS transfering fiscal authority to a foreign entity. Merkel now accepts her defeat and claims "only 9 countries are needed for the ratification of the agreement".

http://www.marketwatch.com/story/only-nine-eu-states-needed-to-ratify-ne...

 

BOSTON (MarketWatch) -- Only nine of the European Union's 26 participating states will need to ratify a proposed new treaty in order for it to take effect, U.K. broadcaster Sky News reported Friday. According to Sky, EU officials are only requiring nine states out of concern that some nations would be unable to speedily ratify the document due their own particular constitutional and legal issues. The new treaty, aimed at shoring up confidence in the euro and the capital markets, calls for tighter fiscal controls among member states in response to the ongoing European sovereign debt crisis.

Oh regional Indian's picture

OT, perhaps it should have been named Zingggggg....ahhhhhh! Names are important, surprised they did not see it coming. 

That IPO is going to be a Zinger. Quite an un-imaginative company anyways, from a gaming pursepective too. 

Somebody somewhere is making a lot of money on this. I wonder who and how.

ori

/this-that-and-the-4th-reich/

fonestar's picture

I'm thirty-three and I never would have imagined that we could have dot.com bubble 2.0 already!  People need to wake up and realize that the total sum value of all the internet, all the marketing schemes, all the social media, all the add-sense, all the micropayments is only worth $0.

The public internet is the greatest triumph of modern communications and engineering and it is nominally worthless.

countupir's picture

I almost agree.  I would say the internet is priceless.  There is money is in the infrastructure and maintaining this communication.  No real money trading virtual goods.  The ones who trade real goods have made a good business online.

flattrader's picture

>>>If you are too blind to see that this type of activity marks the end of the ponzi, then you deserve what you get!<<<

Yep.  This is definitely a pets.com moment.

Rhone_Ranger's picture

I want an angry birds IPO!

bonddude's picture

Pincus is a genius. Just ask him.

"You better gimme that stock back !!!" hahahaha

bonddude's picture

Pincus to employees-

"we have provided you with a cafeteria and sports bar. You never have to leave. ROW WELL AND LIVE !"

Ahmeexnal's picture

Zingar in portorican, venezuelan and many other LatAm countries means....

Ahmeexnal's picture

Aaaaaaaaaaaaand we have a winner.

GeneMarchbanks's picture

I'm shorting already...

Hard1's picture

I tried, not marginable yet!!

Spastica Rex's picture

Zynga was an up-and-coming tech company, then they took an arrow to the knee.

Tortfeasor's picture

You have contracted dysentary.

NotApplicable's picture

If they could find a way to monetize those clicks, they'd have it made. My wife goes through mice quick, though luckily she's becoming a professional Scrabble player. Now, if she can only find a sponsor...

countupir's picture

I think she found one.  Why do you think she got married?

pq7's picture

Isn't GS preparing the Facebook IPO?.......

Mark123's picture

Check out 10 year bond....yield is collapsing!  And stock market rising.

HelluvaEngineer's picture

Yeah, check out the VIX.  Looks like we close in the Red or flat.

Boston's picture

Yup. One of these two markets is dead wrong. Something tells me it's not Treasuries.

CvlDobd's picture

I disagree somewhat. TNX is most likely correct.

The Vix is just showing bulls are asleep at the wheel. It seems they aren't buying protection or shorting which could be in the next leg down for us bears.

JJSF's picture

GRPN will make you more on the short side. Buy yeah...this whole batch of LNKD, GRPN, ZYNGA etc is a godsend.

 

homer8043's picture

When I compared the $8.7B market cap to ERTS at $6.9B, no further analysis was needed to know that this was all kinds of silly.

Plus all the games are suck job wastes of time.

Mark123's picture

But Chinese like to gamble, so this company is worth billions.  (this is highly technical analyis, so don't worry if you don't understand)

homer8043's picture

I'm pretty sure that was sarc. If not, there are plenty of non-corrupt internet gambling companies that have been booted off of US shores by Congress. Zynga is not one of them.

flattrader's picture

The Chinese make their prisoners work during the day at slave labor manufacturing jobs and at night earning on-line gaming credtis for sale to idiot Americans who don't have anything better to do with their money than buy credits to play a free game.

Zola's picture

I am outraged at all the clueless morons buying this crap and other tech rubbish while real money and miners are getting blowtorched. Epic misallocation of capital.

scatterbrains's picture

Isn't that just DTCC induced naked shorting to suppress price ?

IF these crooks ever lose their grip on the strings I can imagine the most spectacular rise in gold/silver the world has ever known.

Seize Mars's picture

I am outraged at all the clueless morons buying this crap and other tech rubbish while real money and miners are getting blowtorched. Epic misallocation of capital.

Correct. That is what the whole paper money fiasco machine is designed for. It's designed to get people to misallocate capital. The Austrians call it "malinvestment." 

It means that making money is a function of connections; if you are connected, you have access to capital. Forget that it's possible to make money rebuilding the roads in my town. That won't get funded. However, DrKoop.com, er, excuse me I meant Zynga, no problem.

It's a waste of time, a waste of money, but most importantly a waste of peoples' lives. Imagine how many people are tied to this stinking / sinking ship, accounting, back office, sales, whatever, all of whom could be leading happy, productive - and profitable - lives, but they are enslaved to the paper ShitShow. Zynga. Nice.

Thank you, Rockefeller, thank you Warburg, thank you especially Senator Aldrich, you shitbag. All of you. Thanks.

walküre's picture

It's a waste of time, a waste of money, but most importantly a waste of peoples' lives. Imagine how many people are tied to this stinking / sinking ship, accounting, back office, sales, whatever, all of whom could be leading happy, productive - and profitable - lives, but they are enslaved to the paper ShitShow

 

Very good perspective. But WHO is going to stop the madness and WHO is going to stop THEM before we all end up in the crapper?

We are going downhill fast. So much for "evolution".

Sokhmate's picture

i could not give you a green arrow!! even though I wanted to. Here is +1.

Dr. Engali's picture

Wow! Who'd thunk it? I crappy overvalued Internet IPO dropping below it's offering price. Does this mean people are looking at fundementals finally? Somehow I doubt it.

OpenEyes's picture

It's truly amazing that GS consistantly 'offers' their clients so many pieces of shit that, at a later date it becomes known, they themselves had so many bets against.  Almost as if they view their own clients as sheep to be sheared.  Well, actually, that's all very understandable considering the vampiric, immoral, and criminal source that is GS.  I guess what's amazing to me is that their clients continually fall for it!  I mean, they convince their clients time and time again to buy into the crap that they're selling and then it comes to light, time and time again, that GS themselves were heavily loaded up against the very thing that they were touting as a great investment just days or weeks before.  So, they make money on both ends, commissions selling you the shit and huge profits from betting against the very same shit!

 

MountainGreenhouse's picture

I don't see why everyone have such a problem with this company?  They make a product people want, and they seem to do it pretty damn well.  Have you seen how many people are addicted to these facebook games and how they blow money getting extra virtual perks in the "free" game.  Unlike most of the other tech IPO's I personally think this one might actually be worthwhile.... at least until the market goes boom.

williambanzai7's picture

Take a look and decide if something like this deserves the valuation it received in this market.

Looks like another pump and dump.

pods's picture

Can you still buy shares in the pet rock company?

Now we just have virtual pet rocks.  Or virtual gardens.  

Well when shit goes south maybe they can virtually eat their virtual food?

One saying to live by:

"Never underestimate the power of stupid!"

pods

JJSF's picture

Check out Zynga's Alexa ranking. Web traffic down every month since mid 2010 except for the last two months..probably due to ipo hype. They did this ipo just in time to pull a big pay day...lots will get fleeced on this one. Seeing lots of twitter folks with names like "Dentist101" etc dropping their savings into this thing today...

TheHillrat's picture

Yeah! someone finally knows what an Alexa ranking is, Page Rank, BackLinks etc. Domaining is better than picking stocks because you don't have the Bernake to mess with your traffic. Just google. 

sabra1's picture

zynga lobbies insider politicians, insiders get in high, short immediatly, make lotsa money for the holidays. meanwhile, the sheeple will be suckin' shit thru a straw! but all is not lost, for my storage locker is full to capacity with rope and noose! lamp post ornaments, here we come!!!

SheepDog-One's picture

Well youll love this one, right on cue for war hype-up heres a group of dual-citizenship lawyers and judge that has ruled IRAN...yes IRAN...is now responsible for 9-11 false flag! Can ya believe it!

Judge FALSELY Rules Iran Connected To The Zionist False Flag Attack on 911 - YouTube

pods's picture

So do we have to apologize to Iraq for bringing them democracy?

Or afghanistan for replanting their opium?

pods

StychoKiller's picture

Hmm, I'm sure Pakistan positively luvved all those wedding party "noisemakers!"  :>D

homer8043's picture

I'm still waiting for the greatest short of our time to make it to market, Facebook. Probably going to be too late or at a greatly reduced valuation that reduces the shortability somewhat.