Zynga’s stock has been dropping after peaking at $11 a share, now resting below the initial offering of $10. While the company is profitable, it is believed that investors are increasingly wary of tech stocks, which isn’t the greatest of signs for Facebook or Twitter should those companies go public.
At the same time, the large number of shares being sold may have had a negative effect on the price. Investors are also probably leery of a new company where the board is still controlled by the CEO along with concerns about Zynga’s long-term prospects relating to its growth and overt dependence on Facebook.
Source: AdWeek
