Is Zynga (NASDAQ: ZNGA) Finally on the Mend?
Social media is like a virus; it’s fast growing, furious and impossible to ignore. And now, like a virus, social media company Zynga (NASDAQ: ZNGA) may finally be contagious. No one can dispute that it’s been a rough road for the company since its IPO at the end of 2011. Then, it was one of the most highly touted new kids on the block. The San Francisco-based company had managed to raise an astounding $1 billion dollars in the biggest Internet company debut on Wall Street since Google Inc. (NASDAQ: GOOG). Zynga priced its initial public offering at $10 per share and the world looked rosy for the creator of such games as Words With Friends and Farmville . That was in December of 2011. By January things had begun to go horribly wrong. In fact, shares which had traded of a high of $15.91 began a slow, inexorable slide until finally bottoming out at $2.09. As investors clutched their chests in dismay and the company hung its head in shame, the finger pointing began in earnest. The IPO was over-priced. Zynga should never have gone public. It was all Facebook’s (NASDAQ: FB) fault. The laundry list went on and on. But now the company appears to be taking advantage of a potential niche.
