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ZNGA: Zynga Stock Sells Off Following KING IPO

KING shares fell during their first day of trading


znga stock zyngaWednesday’s much-watched IPO for mobile game-maker King Digital Entertainment (KING) pushed social game-maker Zynga (ZNGA) stock down more than 4%.

KING stock fell more than 10% in morning trading. The Ireland-based developer of the popular Candy Crush mobile game raised $500 million, selling 22.2 million shares at $22.50 per share. Analysts expected to KING to generate $2.62 billion in revenue in 2014, Bloomberg noted.

Social Stocks We Should Be Talking About
Social Stocks We Should Be Talking About

The slide in KING shares appeared to affect other social media stocks. In addition to ZNGA, shares of Facebook (FB) and Twitter (TWTR) also declined. FB stock sank about 3%, while TWTR shares fell more than 2% in morning trading.

ZNGA hasn’t recorded an annual profit since its own 2011 IPO. On its opening day, ZNGA shares fell 5%.

On Tuesday, ZNGA stock closed at $4.84 per share. Over the past 12 months, ZNGA stock has climbed more than 40%, in part because of new CEO Don Mattrick’s plans to reinvigorate the company.

Article printed from InvestorPlace Media,

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