Busted Zynga IPO Weighs Further On Social Media Shares (ZNGA, GRPN, LNKD, SINA, SOCL, GSVC)

Media

Published: December 19, 2011 10:35 am

Last Updated: April 27, 2020 6:15 pm

Zynga, Inc. (NASDAQ: ZNGA) is an initial public offering in trouble. Whether you call it a busted IPO, a broken IPO, or something else is up to you, but the sell-off from the start needs to be a lesson to the underwriters and to the investors who buy shares of initial public offerings.

What was unique about this IPO is that the entire Class A share voting class, the shares which the initial public offering investors were buying last week, appear to have a whopping total of 1.8% of the voting rights after you tally up the B Shares and the C shares into the equation.

The new investors were buying into a public valuation of $7 billion after the company sold $1 billion worth of the common stock. The social video game company is taking a toll elsewhere.

Groupon, Inc. (NASDAQ: GRPN) is down 2.8% at $22.40 with a post-IPO range of $14.85 to $31.14. LinkedIn Corporation (NYSE: LNKD) is down 0.1% at $65.76 with a post-IPO range of $55.98 to $122.70. Sina Corporation (NASDAQ: SINA) is down almost 4% more at $52.88 against a 52-week range of $46.86 to $147.12 as China regulation on microblogs increases.

Global X Social Media Index ETF (NASDAQ: SOCL) has not traded, signs that “social media” in stock ETFs can be skipped.

GSV Capital Corporation (NASDAQ: GSVC) is trading higher as a beneficiary of owning Twitter shares now that Prince Walid bin Talal of Saudi Arabia has taken a $300 million stake in Twitter. GSV owns Twitter shares (and Facebook shares) and its shares are up 1.3% at $14.19 on the day.

Zynga shares are trading down another 4.7% at $9.05 after closing at $9.50 on Friday. Unfortunately, Zynga’s IPO price was $10.00 per share.

JON C. OGG

Travel Cards Are Getting Too Good To Ignore

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.