Wednesday, January 25, 2012
Zynga?s Stock Rating Gets A Boost, And So Does Its Traffic
Wall Street has had trouble knowing what to make of Zynga, considering it's the first Facebook-oriented virtual goods business to be publicly traded. The stock has been seesawing below its $10 initial share price since the company went public in the middle of December. Main concerns have been its heavy reliance on Facebook for traffic, and on a small number of paying users for most of its revenue, as well as its relatively flat traffic. But now, it's getting some more positive signs. First, five banks who underwrote its IPO�provided their initial coverage today. They�haven't been able to say anything up until this point due to the company's now-lifted quiet period. But two less conflicted analysts are also positive. And, traffic is going up.