Zynga IPO opens today, closes down 5 percent

Zynga's IPO launched today but fell "within the first 10 minutes of trading," landing 5 percent down to $9.50 a share by the time the market closed.

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The initial public offering (IPO) for social game giant Zynga has finally been released into the wild--or in this case, the Nasdaq Stock Market. The stock, which uses the symbol "ZNGA," was offered at $10 per share.

Initial performance for the stock, however, was not as popular as the company had hoped. It closed down 5 percent at $9.50. According to Dealogic, only five of 22 U.S. Internet IPOs have closed down on their first day of trading this year.

According to Venture Beat, the weak performance of Zynga's first day of trading came after "after a considerable mix of hype and cynicism" for the company. Zynga's public image has been less than stellar, forcing the company to reevaluate and reform its internal structure.

Zynga was trading at around $11 when the market opened, but "fell below its IPO price within the first 10 minutes of trading," Dealogic reported.

Zynga struck big with social games such as Farmville and Mafia Wars. The company had filed for its IPO for $1 billion, despite seeking a $2 billion offering. Though the company has been wildly successful, some reports anticipate that social game markers may see downsizing in 2012.

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    December 16, 2011 6:30 PM

    Xav de Matos posted a new article, Zynga IPO opens today, closes down 5 percent.

    Zynga's IPO launched today but fell "within the first 10 minutes of trading," landing 5 percent down to $9.50 a share by the time the market closed.

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      December 16, 2011 6:40 PM

      Bet they're all glad they ran away with the bacon before the market woke up and sees they have don't really have much hope of growth in the future.

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        December 16, 2011 6:41 PM

        Can't short yet.

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          December 16, 2011 6:46 PM

          when it does happen they'll be impossible to borrow within 30 seconds too

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        December 16, 2011 6:43 PM

        I'm pretty sure there is still room for growth in their market.... Every title they launch is a massive success, can't go wrong with that.

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      December 16, 2011 6:44 PM

      So glad I held off on this investment.

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        December 16, 2011 8:07 PM

        Says more about the market and IPO's rather than the company. They are profitable so it's only a matter of time before the share price rises.

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          December 17, 2011 10:05 AM

          But you have to look at what the stock price values the company at. Just because they make a profit and have room for growth doesn't mean they are not way over valued.

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      December 16, 2011 7:46 PM

      They should have offered a limited edition cow for every $20 of stock.

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      December 17, 2011 11:08 AM

      Didn't it fall because of all the c*cksmokers(1%) who got exclusive first buy on the stock sold immediately making a tidy profit and letting the losers(99%) take the loss? What a great financial system we got going here people, how can this end badly?

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        December 17, 2011 11:27 AM

        No, the 1% bought at $10 and then the 99% said "we'll give you 9 bux for that"

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      December 17, 2011 11:50 AM

      It's cause facebook/mobile gaming is a bubble.