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Zynga IPO: Any takers here?

busydude

busydude

Diamond Member
http://www.washingtonpost.com/busin...est-tech-ipo/2011/12/02/gIQAbY0GKO_story.html

Zynga, whose games are played mainly on Facebook, plans to sell its shares at $8.50 to $10 each. If the shares are priced at $10, Zynga will be valued at $7 billion based on the number of its total shares. That’s a smaller valuation that the company’s shares have traded recently on SharesPost, a secondary stock exchange used to trade the stock of privately held companies. There, a recent trade valued Zynga at $11.7 billion.


The company expects to sell 14.3 percent of its available stock, according to a filing with the Securities and Exchange Commission. That’s a relatively high “float,” which could give investors confidence that the company isn’t trying to artificially inflate its value. Groupon raised some concerns when it sold just 5.5 percent of its outstanding stock. Though not unprecedented, the amount was below that of many prominent tech companies, such as Google (7.2 percent), Amazon (12.6 percent) and LinkedIn (8.2 percent).
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I don't personally like Zynga.. and their business practices. Do you guys feel it being overvalued... like numerous other tech companies?

Personally, facebook is still growing.. and Zynga's revenues are directly tied to the growth of facebook. So... there is growth potential to that company.
 
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Id buy and sell in a week if I could. I personally hate the company but stupid people like to throw money at stupid things, so theres plenty of cash to be made in fleecing idiots 99 cents at a time.
 
jjsole said:
Wall street goes from hawking one scam to another. $7 billion for that company is a crock of sh!t.
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Wall Street doesnt care about its future, it only cares about how much it can pump it up for a week so they can dump their shares onto some other loser. See Groupon.
 
What barrier of entry is there for a competitor to enter the market?
Zero?

What intellectual property (patents) do they own?
Nothing?

What tangible property do they own?
None?
(They use a few in-house servers and a lot of Amazon's cloud)

So where does the value really come from?
(long term)

That fact that something like 95% of their revenue comes from 10% of their users (something insane like that - cannot remember the actual number off the top of my head) should worry everyone.
 
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Patranus said:
What barrier of entry is there for a competitor to enter the market?
Zero?

What intellectual property (patents) do they own?
Nothing?

What tangible property do they own?
None?
(They use a few in-house servers and a lot of Amazon's cloud)

So where does the value really come from?
(long term)

That fact that something like 95% of their revenue comes from 10% of their users (something insane like that - cannot remember the actual number off the top of my head) should worry everyone.
Click to expand...

It does sound like they are trying to claim ownership of "ville" by a lot of the lawsuits they are tossing out.

As for what they own check this out:

http://blogs.reuters.com/mediafile/...s-raised-the-ante-in-web-start-up-workspaces/
 
Slew Foot said:
Wall Street doesnt care about its future, it only cares about how much it can pump it up for a week so they can dump their shares onto some other loser. See Groupon.
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Also, see Pandora, LinkedIn.
Those stocks including Groupon are all down by ~-40% from their first or 2nd trading days.
 
jjsole said:
Wall street goes from hawking one scam to another. $7 billion for that company is a crock of sh!t.
Click to expand...

Agreed. The only ones likely to make any money here are the brokerage and the upper management (the CEO, CFO ... the "thieves") of the company.
 
Zynga is hugely over valued. They rely solely on Facebook to get users and Facebook takes a HUGE cut.

Now Zynga with this IPO wants to ditch facebook. I got news for them, their "customer" base won't follow.
 
Wreckem said:
Zynga is hugely over valued. They rely solely on Facebook to get users and Facebook takes a HUGE cut.

Now Zynga with this IPO wants to ditch facebook. I got news for them, their "customer" base won't follow.
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If you use the some of the games they have that's off of facebook, some games do this and it's still linked with your facebook account so you have everything the same, they have to charge the same amount as on facebook however this skips the 30% cut facebook takes.

I don't play any zynga games at the moment but another game I do play does this.
 
This is everything that is wrong with the banking practices in this world. Everybody jumps on the bandwagon and as long as they aren't the poor schmuck who loses their house when someone actually realises this POS company is actually worth about 1/1000 of what it is valued at they don't care.

I have no sympathy for anyone who invests in a company like this but i'm sure we will carry on seeing all the sob stories on the news
 
and people wonder why there are protests on wall street. shit like this is just to milk money from the system without doing any work. few clicks of the mouse, fill out a few forms, boom, millions. oh those 1%, they work so hard for their money; why can't the lazy unemployed have that kind of work ethic?
 
slayer202 said:
and people wonder why there are protests on wall street. shit like this is just to milk money from the system without doing any work. few clicks of the mouse, fill out a few forms, boom, millions. oh those 1%, they work so hard for their money; why can't the lazy unemployed have that kind of work ethic?
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Life would be so much better if we just got rid of the internet. :colbert:
 
lolz..They won't raise anywhere near 7 Billion. I'd short that fucker out of the gate.
 
busydude said:
http://www.washingtonpost.com/busin...est-tech-ipo/2011/12/02/gIQAbY0GKO_story.html

I don't personally like Zynga.. and their business practices. Do you guys feel it being overvalued... like numerous other tech companies?

Personally, facebook is still growing.. and Zynga's revenues are directly tied to the growth of facebook. So... there is growth potential to that company.
Click to expand...

Only buy it if you need to lose money.

I recommend against purchasing any of these IPOs like Groupon etc..
 
slayer202 said:
and people wonder why there are protests on wall street. shit like this is just to milk money from the system without doing any work. few clicks of the mouse, fill out a few forms, boom, millions. oh those 1%, they work so hard for their money; why can't the lazy unemployed have that kind of work ethic?
Click to expand...

No one forces you to buy this IPO.
 
Patranus said:
What barrier of entry is there for a competitor to enter the market?
Zero?

What intellectual property (patents) do they own?
Nothing?

What tangible property do they own?
None?
(They use a few in-house servers and a lot of Amazon's cloud)

So where does the value really come from?
(long term)
Click to expand...

How much revenues are they generating?
>$1b annually

How much in EBITDA are they making?
Between $300m-400m annually

How much cash do they have on their balance sheet?
>$1 billion

You are crazy if you don't think they have IP. They have a treasure trove of user behavioral data that they have no idea what to do with and is worth millions when monetized.

Although they'll be pricing their IPO at $7b, it'll probably open trading at $12b, or $17. If you can get in at the IPO price this is a no brainer. Harder to stomach it at $17 as their growth has been slowing. Their CEO is a class A asshole but they have top people working for their company. You can claim no barrier to entry all you want but they've proven that they created one.

This is definitely no Groupon.

Patranus said:
That fact that something like 95% of their revenue comes from 10% of their users (something insane like that - cannot remember the actual number off the top of my head) should worry everyone.
Click to expand...

Investors view this favorably. It means they have yet to tap into 90% of their users for revenues. Also, they just struck an ad deal so they will be generating revenue off most users.
 
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