Anyone getting in on zynga ipo?

What does market analysis tell you and how much can you afford to lose.

i can afford to lose it 5k, their making money but i think they are really overvalued.

Quote from PRINTABLECOUPON : i can afford to lose it 5k, their making money but i think they are really overvalued.

Homeaway was probably a better choice, too late now.

How many companies provide games on Facebook ?

How many users have Facebook account

Personally if had $5000 to blow id buy $1 hdmi cables and resell them for $8

The latest round of web IPOs are overpriced. Too much risk for too little reward.

regardless of the actual value of the shares, i have a strong feeling that they are going to skyrocket immediately, and then go down over the rest of the week to their actual value. that seems to be the pattern with the recent tech/internet IPOs.

I am staying clear of IPOs. Not worth the risk.

Zynga's SEC filings: http://sec.gov/cgi-bin/browse-edg...e&count=40

As an average joe, you can't get in on really the ground floor of an IPO, especially on one that will pop like this probably will. You wont pay the asking price you will pay the market price that is way inflated. Also it will be hard to get a small order in. Good luck to anyone trying.

Even if you can get in on the IPO of Zynga (who knows, it's possible the usual suspects have already realized how stupid of an investment it is in the long term and aren't buying) if you want to save yourself some time and just take all of the capital losses, send me a check, I"ll cash it and then set your big pile of money on fire for you.

My qualitative analysis tells me me to stay away from Zynga. Yes, they currently have a large user base, and decent numbers to back them up. However they don't have much of a "moat" (barrier to entry) to ward off competitors. There's also basically zero switching cost for their customers. I see the customer base as being somewhat fickle and as result, I don't trust the long term earnings visibility of Zynga.

Major gaming studios (EA, etc) are moving towards the mobile gaming apps and are taking a hard look at micro-transaction business models. I believe there's a good chance Zynga will be losing market share in the mid-term future.

But then again, it could explode Apple style....

Have you checked out their S1?

$574.6 million of Zynga's 2010 revenues came from players buying virtual items within its games, while just $22.8 million came from advertising.

Some concerns they note are:
1) They are highly dependent on one platform "Facebook is the primary distribution, marketing, promotion and payment platform for our games". While Zynga has at least the four most popular games on Facebook, it has none in the top 10 on Apple's platform for instance.

2) "a small percentage of our players account for nearly all of our revenue"

3) "Historically we have depended on a small number of games for a majority of our revenue and we expect that this dependency will continue for the foreseeable future".

Scary.

Though, unlike Pandora and Linkedin they are actually quite profitable.

The name recognition, media exposure, and fact that it's social media will probably artificially inflate the stock early on from the general public pumping in money.