Zynga stocks fall as Facebook launches IPO
Friday, 18th May 2012 at 6:55 pm
Record low of $7.10 as investors jump ship to get in on new IPO
Zynga's stock price has tumbled to $7.25 today as investors pull funds to get in on the Facebook IPO.
The social media company went public today, with shares priced at $38 when they went on sale at 11:30am.
Facebook prices immediately rose to $42 dollars a share, but investors seeking to cash in on this initial jump had sold their shares in Zynga, causing the ticker to plummet to $7.17.
The social games company launched its own IPO back in December at $10 a share, with speculation of shares eventually reaching $15, but Zynga has always struggled to maintain that initial price.
The Facebook launch suggests the reason for Zynga's fortunes has been that it was viewed as the next best thing to owning stock in the social media company.
Zynga shares have dropped by over 12 percent, with trading at double its average volume.
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