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Technology Stocks : Zynga, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (103)	12/16/2011 12:57:26 PM
From: Glenn Petersen	Respond to of 365

ZNGA's underwhelming debut: Zynga’s Modest Debut By EVELYN M. RUSLI DealBook New York Times December 16, 2011, 11:52 am Zynga’s debut lacked the usual New York fanfare. Instead of photo shoots at Nasdaq’s Times Square locale, Mark Pincus, the founder of the gaming company, rang a makeshift opening bell inside Zynga’s headquarters in San Francisco. The debut also lacked the usual pop associated with highly anticipated Internet offerings. On Friday, Zynga’s shares rose a modest 10 percent at the open, to $11, before dipping below its offering price briefly. The stock is currently trading at $10. Zynga’s early trading reflects the broader market for initial public offerings. Newly public technology stocks have been buffeted by macroeconomic turmoil and jittery investors, who remain skeptical about the business models. Several Internet companies have stumbled below their offering prices. Pandora remains more than a third below its price. Nexon, the Zynga of Asia, fell on its first day of trading earlier this week. According to Renaissance Capital, an I.P.O. advisory firm, the technology sector has recorded 42 I.P.O.’s, worth $8.5 billion, year-to-date. The group has averaged a 20.4 percent gain for the first day of trading, but many have struggled to stay above water. The group has fallen about 15 percent on average since the beginning of the year. In the coming months, Zynga will be a critical test for the fragile market. Traders are also closely watching the stock to get a sense of how Facebook will fare, when it goes public next year. The social network giant is widely expected to go public in the second quarter of 2012, at a market value more than $100 billion. Financially, Zynga is on better footing than many of its peers. The company recorded earnings of $30.7 million for the first nine months of this year, on revenue of $828.9 million. It is also the largest gaming company on Facebook, with some 222 million monthly users. But Zynga also has its fair share of skeptics. User growth has slowed in recent quarters, while marketing expenses remain high. Zynga spent 122 million on marketing and sales for the first nine months of the year, more than all of 2010. Still, Mr. Pincus, who rang the bell with his wife, Ali Pincus, at his side, had reason to celebrate. At the current price, his 16 percent stake is worth $1.1 billion. dealbook.nytimes.com

To: stockman_scott who wrote (103)	1/19/2012 2:30:10 PM
From: Glenn Petersen	2 Recommendations Respond to of 365

Zynga Dealt Strong Hand in Gambling By ROLFE WINKLER Wall Street Journal January 14, 2012 Gambling industry giants are raising the stakes at virtual casino tables. For Zynga investors, that's good news. Late Thursday, slot machine company International Game Technology said it would pay $500 million over three years for Double Down Interactive, the developer behind a popular virtual casino on Facebook. The price looks high considering Double Down has just 4.7 million monthly active users according to AppData, although Facebook lists it as the third-largest social gambling app. Double Down has not disclosed its financial results. Why the huge sum for a modestly sized developer of casino games that makes its money, not from gambling, but by selling virtual goods? IGT's Chief Executive Patti Hart argues that Double Down is a strategic asset. IGT's customers, which include gambling industry companies like Caesars Entertainment, MGM and Las Vegas Sands, are anxious to market themselves to the new crop of online gamers. Indeed, Caesars just completed an acquisition of Playtika, the developer behind slot machine game Slotomania, the second-largest social gambling app on Facebook. It also puts IGT in a better position if more states, and perhaps the federal government, decide to legalize online gambling. That looks a stronger possibility after the Justice Department opened the door to online gambling last month. If Double Down's less than five million users are worth more than $100 each, what of the 30 million users playing Zynga Poker? That is by far the most popular social gambling app on Facebook. While Zynga isn't likely to sell the game, surely those users represent an even richer marketing opportunity for casinos. Casinos have little choice but to reach out to these gamers. As online gambling gains steam in the wake of the Justice Department memo, casino revenues could be at risk as some gamblers decide to play poker or slots from the comfort of their living room. This could give Zynga a valuable trump card. Write to Rolfe Winkler at rolfe.winkler@wsj.com http://online.wsj.com/article/SB10001424052970203721704577158711402746548.html