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Social Media Slipping - Zynga Down 40%, Facebook Down 8%
Reply to @Kenster1_GlobalValue: Back of the envelope valuation calculation done around the time of IPO value the company at $16/sh. Today, it is probably lower. BTW, there has been an exodus of important employees after the IPO. I am sorry for those that bought at IPO price or higher.
"At Friday’s price, Zynga is now below even that threshold. An analysis by Doug Anmuth of J.P. Morgan found that Zynga has about $2.16 per share in cash and equivalents on its balance sheet, and the value of its San Francisco headquarters that it owns equates to about 30 cents per share. That puts the company’s cash-plus-real-estate level at $2.46 – or about 9% above the stock’s current value. Several other analysts noted the same, but stayed away from recommending the stock to investors as a value or speculative play. Ben Schachter of Macquarie wrote that “we would caution investors against bottom fishing until we see proof of execution and a path to profitability.”"
Comments
Unintentional humor: Analyst ratings for Zynga:
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/07-2/20120725_znga_anr.png
http://www.thereformedbroker.com/2012/07/26/are-you-not-entertained/
Groupon stock also took a major pummeling over the past year - are they nearing the bottom?
"At Friday’s price, Zynga is now below even that threshold. An analysis by Doug Anmuth of J.P. Morgan found that Zynga has about $2.16 per share in cash and equivalents on its balance sheet, and the value of its San Francisco headquarters that it owns equates to about 30 cents per share. That puts the company’s cash-plus-real-estate level at $2.46 – or about 9% above the stock’s current value. Several other analysts noted the same, but stayed away from recommending the stock to investors as a value or speculative play. Ben Schachter of Macquarie wrote that “we would caution investors against bottom fishing until we see proof of execution and a path to profitability.”"