Zynga’s stock rises, then tanks during Unleashed event
Zynga’s shares started strong today, trading at over $6 a share, the highest trading price in over two weeks for the stock. The rise is likely due to speculation about the company’s Zynga Unleashed event occurring today, which you can read our liveblog coverage of. By the end of the presentation, though, shares were below where they started, selling for $5.64.
At the time of writing, the stock is selling for $5.64 a share (screenshot below captured just before the low ebb). The last time the stock was at this price was on June 7, shortly before the stock dropped as far as $4.84 a share.
Although the stock managed to stay above $10 a share in February and March, it’s been struggling since the company’s last earnings call on April 26, when it announced a net loss of $85.4 million. Shares contributed to drop for several weeks before plummeting in the wake of Facebook’s problematic IPO on May 18. Since that point, the stock’s fallen steadily, hitting the aforementioned low.
Investors have seemed wary of putting more money into the company because of a perceived over-reliance on Facebook for its business model. Zynga’s new announcement that it’s the world’s largest mobile developer, as well as the newly-revealed Zynga Partners for Mobile program, may help change this perception. We’ll update this story at market close.