Analyst: Stock Market Values Zynga At Below Zero

[Guest]

Zynga may hold the title of most popular Facebook application developer with 327 million monthly active users, but it appears investors care very little about this fact.

Analyst: Stock Market Values Zynga At Below Zero : Read more

 

[esrever]

$0 is how much I value zyanga, glad to see someone agrees.

 

[zomow]

Over-hyped stock is over-hyped.

 

[mikenygmail]

Wrong, the stock market values ZNGA at $2.45 per share.
That's the current price right now in after hours.
You could buy it for $2.46 per share, or sell it for $2.44 per share.

If we are to believe the analyst, then ZNGA would be an easy short.
Things are rarely that easy in the stock market, which is heavily manipulated.

 

[grimworld]

Who's to blame? People can only tolorate so so many "ville" games. Be creative for once

 

[aftcomet]

[citation][nom]mikenygmail[/nom]Wrong, the stock market values ZNGA at $2.45 per share.That's the current price right now in after hours. You could buy it for $2.46 per share, or sell it for $2.44 per share.If we are to believe the analyst, then ZNGA would be an easy short.Things are rarely that easy in the stock market, which is heavily manipulated.[/citation]

Exactly. Jokes aside if this stock were valued below zero I'd go get 10 mortgages and buy it because there is an extreme inefficiency in the market and I want to cash in.

I hate Zynga but from a business perspective, if you can generate money from fools by churning out trash games that are simply reskinned (Angry Birds -> Angry Pigs), then why not?

 

[raytseng]

i'm not sure if people misread the article are actually trying to make some odd point.

yes headline is misleading, but article explains that their "business" is valued at zero, or negative.

So YES, you go take out a $1.87billion loan, buy every share of zynga. Then if you can liquidate all the office equipment and other physical stuff for it's amortized value, and get someone to takeover your lease(s) on the buildings with no time gap, then YES you break even.
(of course this is making the assumption they don't have poison pills to prevent a takeover, and every share is for sale).

But yea, that is exactly how I read the article.

What the valuation is saying is that the analysts believe the direction of the company is currently to just burn and lose more value and money.

 

[aftcomet]

[citation][nom]raytseng[/nom]i'm not sure if people misread the article are actually trying to make some odd point.yes headline is misleading, but article explains that their "business" is valued at zero, or negative.So YES, you go take out a $1.87billion loan, buy every share of zynga. Then if you can liquidate all the office equipment and other physical stuff for it's amortized value, and get someone to takeover your lease(s) on the buildings with no time gap, then YES you break even. (of course this is making the assumption they don't have poison pills to prevent a takeover, and every share is for sale). But yea, that is exactly how I read the article.What the valuation is saying is that the analysts believe the direction of the company is currently to just burn and lose more value and money.[/citation]

If I could buy their company for 1.87B and they have assets valued at 2.7B then I'd be doing a lot more than breaking even.

 

[raytseng]

lol, although the assets of 2.7B was in June. If they have full time employees shoveling cash just straight into the fire for the past 4months, that might have turned out better.

 

[stingstang]

At this point my dad would tell me (if I invested stock in the company) "Just keep you money in there. The stock will go back up."
...I really hate him.

 

[A Bad Day]

[citation][nom]stingstang[/nom]At this point my dad would tell me (if I invested stock in the company) "Just keep you money in there. The stock will go back up."...I really hate him.[/citation]

One of my parent's friends invested in Enron back when the stock price was in the high 80s.

How sour they were...

 

[mylloc]

Hi-risk hi-gain, low-risk low-gain. Thats how we play. Many people dont know how they work.

 

[aftcomet]

[citation][nom]raytseng[/nom]lol, although the assets of 2.7B was in June. If they have full time employees shoveling cash just straight into the fire for the past 4months, that might have turned out better.[/citation]

Your post doesn't make any sense.

 

[martel80]

I guess the point this article is struggling to make is that the current liquidation value of the company may be higher than its current market cap?
So basically all what the company does is worthless.

 

[rosen380]

http://www.sfgate.com/technology/dotcommentary/article/Free-falling-Zynga-needs-fast-turnaround-3796892.php

That article, from two months ago, cites some similar numbers, but they have the $2.7B in assets plus ~$0.85B in liabilities coming out to $1.86B. Does that mean that the $1.87B market cap actually just means the business, assets excluded, is just "nearly" worthless [about $10M], not worth less than zero?

 

[misterawsome]

i'll buy all the stock brilliant

 

[misterawsome]

[citation][nom]aftcomet[/nom]Exactly. Jokes aside if this stock were valued below zero I'd go get 10 mortgages and buy it because there is an extreme inefficiency in the market and I want to cash in.I hate Zynga but from a business perspective, if you can generate money from fools by churning out trash games that are simply reskinned (Angry Birds -> Angry Pigs), then why not?[/citation]why would you need 10 mortgages its free

 

[abbadon_34]

ripe for a hostile takeover