How is Zynga Down on Facebook Day?
We all know that the market is an unpredictable beast, but it is still slightly surprising that Zynga (NASDAQ: ZNGA) is trading down on the same day that Facebook (NASDAQ: FB) goes public, attracting an unprecedented level of media attention in the process.
Zynga closed on Thursday at $8.27 and, at the time of writing, it is down 2.53% at $8.07. Zynga has gone up and down in waves since going public, but one would expect that, if it was going to do well on any day at all, it would be today.
Other web-based companies, like Groupon (NASDAQ: GRPN), LinkedIn (NASDAQ: LNKD) and Netflix (NASDAQ: NFLX) are unpredictable today also, but still, with its implicit connection to Facebook established, one would think that, simply by having one degree of separation, today should be a great day for Zynga too. It isn't working out that way.
Whether it picks up as Facebook settles into the market remains to be seen. Of course, it is also entirely possible that people have lost faith in the company completely, and not even the Facebook connection can help them now.
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