In gaming news, gambling stock analyst Vince Martin evaluates Facebook game developer Zynga (ZNGA) of its potential in online gambling.
Earlier this month, the New York Post reported that Facebook game developer Zynga (ZNGA) was in talks with Wynn Resorts (WYNN) about a joint venture in the prospective US online gambling industry. The news did not appear to move the stock; ZNGA, in fact, fell 2% in that day’s trading, to $12.22 per share.
Over the last two-plus weeks, Zynga’s fall has accelerated; it closed Friday at $9.22. The reasons for the fall are difficult to parse; a secondary offering in late March, where shareholders sold an additional $515 million worth of shares into the market increased the stock’s “float” and may have helped push the stock down. But with a young (the company only went public in December) and speculative (Zynga is not yet profitable) stock, the drivers of even large movements like the current one-month, 33% drop can be difficult to tease out.
Via This Week in Gambling, Vasileios Volikakis