Shalom Life | April 28, 2015

Facebook Shares Drop Below $30, Zynga and LinkedIn Join the Plunge

Social networking giants continue their downward spiral

By: David Shear

Published: May 29th, 2012 in Business » World

Facebook Shares Drop Below $30, Zynga and LinkedIn Join the Plunge

The Facebook plunge is being felt across the industry as rival LinkedIn and mate, Zynga have been on the wrong end of the Facebook IPO aftermath.

Facebook (FB) fell to an all-time low of $29.11 at time of writing, down from their May 18 debut at $38 and their all-time high of $45.00, as investors are getting more concerned over proper valuation and lawsuits.

Zynga (ZNGA), the social game developer whose majority of revenue are generated through Facebook, and who is also one of Facebook’s largest third-party revenue generators, has seen its stock dive to $6.09 a share today, down from their debut of $10 a share in December and an all-time high of $15.91 a share. Today also marked the end of the lockup period for Zynga employees, allowing them to sell their stock which they had been forced to hold since the company went public. Employees are now able to sell an estimated 325 million shares, which isn’t helping the downward spiral of the stock. By noon Tuesday nearly 30 million shares had been traded, more than 50% higher than Zynga’s daily trading volume average.

LinkedIn , however, has written a different story so far but the ending looks to be similar. The stock was issued at $45 and went as high as $122.70 before settling at $94.25 on its May, 2011 debut. For early investors, they have still seen great returns, more than doubling their investment, but since then the stock has hit a low of $60 to bounce back to $113.49 a share and then drop a couple of days before Facebook’s debut, to $99.06 as of time of writing. Facebook’s anticipated debut seemed to have caused many investors to abandon the LinkedIn ship to try and get in the Facebook game. Unfortunate decision.

So which of the three Jewish Founded high-tech darlings are a better investment going forward? LinkedIn has a smaller public float, as compared to Facebook which had sold a larger portion of their company in the offering. This small float creates value for LinkedIn’s shareholders, but this value is still imaginary and disproportionately higher than it should be. LinkedIn, with much smaller profit margins than Facebook, trades at 671 times earnings, while Facebook is trading for 75 times profit, which is still exceedingly high. Zynga stock is at an all time low and more so than any other high-tech stock, will rise and fall with Facebook.

So the answer is: None. Facebook will continue its fall to a number that is far more realistic, around $16-18 a share. Zynga will continue to be the unfortunate victim of Facebook’s future, and LinkedIn is currently trading at a valuation which is ridiculous and will also continue to drop as investors realize there is nothing sexy about investing in over-priced high-tech stocks.

The Israeli Crowdfunding Initiative to Land a Torah on the Moon The Israeli Crowdfunding Initiative to Land a Torah on the Moon TrendingPoland Wants Mattel To Recall 'Apples To Apples' Game For Labelling Them As Nazis Poland Wants Mattel To Recall 'Apples To Apples' Game For Labelling Them As Nazis TrendingAshely Madison To Make A $200 Million IPO Ashely Madison To Make A $200 Million IPO Trending
 

WATCH: Jerry Seinfeld Takes Over Late Night From David Letterman

April 27, 2015 | By Caitlin Marceau
WATCH: Jerry Seinfeld Takes Over Late Night From David Letterman

In addition to performing the original routine he performed his first time on the show, Seinfeld also took over the host's seat to grill Letterman on his resignation

Read More

150 Israeli Students Will Speak Arabic on Jerusalem Light Rail in Solidarity with Arab Citizens

April 27, 2015 | By Caitlin Marceau
150 Israeli Students Will Speak Arabic on Jerusalem Light Rail in Solidarity with Arab Citizens

The demonstration is in protest of violence towards Arabic speakers in Jerusalem, and in support of freedom of language

Read More

WATCH: Amy Schumer’s New Doll is the Perfect Toy for Adults

April 27, 2015 | By Caitlin Marceau
WATCH: Amy Schumer’s New Doll is the Perfect Toy for Adults

The commercial for her new 'It's Amy!' doll will have you smiling like a kid, and doubled over laughing

Read More

Meet Your Jewish MLB All-Stars: Class Of 2015

April 27, 2015 | By Harlan Nemers
Meet Your Jewish MLB All-Stars: Class Of 2015

Were the first words in the Torah supposed to be "In the big inning?"

Read More

Ever Wonder What Israel's Favorite Soccer Team Is?

April 27, 2015 | By Sy Berg
Ever Wonder What Israel's Favorite Soccer Team Is?

Study reveals that Chelsea, owned by Jewish pro-Israeli billionaire Roman Abramovich, is the most popular English team in the Middle East

Read More

New York Times Slammed for Running Article Titled 'Israeli Police Officers Kill Two Palestinian Men'

April 27, 2015 | By Daniel Koren
New York Times Slammed for Running Article Titled 'Israeli Police Officers Kill Two Palestinian Men'

"What is so hard about [a] straightforward headline accurately depicting the nature and chronology of events?" asks watchdog group CAMERA

Read More

Toronto UJA Opens Nepal Emergency Relief Fund

April 27, 2015 | By Shalom Life Staff
Toronto UJA Opens Nepal Emergency Relief Fund

One hundred percent of funds raised will provide immediate humanitarian aid to disaster victims and their families

Read More

British Tory Candidate Says She'll Never Back 'the Jew'

April 27, 2015 | By Daniel Koren
British Tory Candidate Says She'll Never Back 'the Jew'

Conservative candidate Gulzabeen Afsar is being asked to apologize after singling out Labor leader Ed MIliband on Facebook

Read More

More Headlines