Shalom Life | October 22, 2014

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.

Known for Chemistry, Israeli Nobel Laureate Also Champions Tech Entrepreneurship Known for Chemistry, Israeli Nobel Laureate Also Champions Tech Entrepreneurship TrendingMango Under Fire For Selling 'SS Blouse' Mango Under Fire For Selling 'SS Blouse' TrendingIsraeli Site Beats BuzzFeed For Second Most Shared Links on Facebook Israeli Site Beats BuzzFeed For Second Most Shared Links on Facebook Trending
 

The Love Jewce: Girlfriends' Guide to Divorce

October 22, 2014 | By Andria Kaplan
The Love Jewce: Girlfriends' Guide to Divorce

Lisa Edelstein stars in a new Bravo show based on the books by Vicky Iovine

Read More

Faces on LP Album Covers, From Madonna to Bob Dylan, Beatbox to Israeli Musician's A Capella [VIDEO]

October 21, 2014 | By Daniel Koren
Faces on LP Album Covers, From Madonna to Bob Dylan, Beatbox to Israeli Musician's A Capella [VIDEO]

Check out this amazing must-see video for Roy Kafri's "Mayokero"

Read More

Jewish Author Naomi Wolf Compares Israel to the Nazis....Again

October 21, 2014 | By Daniel Koren
Jewish Author Naomi Wolf Compares Israel to the Nazis....Again

The feminist political activist has yet again condemned Israeli settlements, saying it's the "same as those of Nazis cutting off the beards of Jews"

Read More

Joan Rivers to Publish ‘Burn Book’ Posthumously

October 21, 2014 | By Ashley Baylen
Joan Rivers to Publish ‘Burn Book’ Posthumously

The legendary comedian requested her diaries be released after her death.

Read More

Barbara Walters ’10 Most Fascinating People’ is Returning

October 21, 2014 | By Ashley Baylen
Barbara Walters ’10 Most Fascinating People’ is Returning

Scarlett Johansson, Chelsea Handler, and Oprah will be among Walters' guests.

Read More

Monica Lewinsky Leads Anti-Bullying Campaign, Calls Herself "Patient Zero"

October 21, 2014 | By Ashley Ramnarain
Monica Lewinsky Leads Anti-Bullying Campaign, Calls Herself "Patient Zero"

Bill Clinton's former intern speaks out at the Forber 30 Under 30 Summit.

Read More

Early Brooke Burke Nude Photos Featured in Art Gallery

October 21, 2014 | By Ashley Ramnarain
Early Brooke Burke Nude Photos Featured in Art Gallery

The former 'Dancing With The Stars' host can be seen topless at the Lilac Gallery in New York City.

Read More

Student: Disgraced Rabbi Took University Students On Unauthorized Field Trips to Ritual Baths

October 21, 2014 | By Daniel Koren
Student: Disgraced Rabbi Took University Students On Unauthorized Field Trips to Ritual Baths

Towson University student says Rabbi Barry Freundel, charged with voyeurism, insisted female students accompany him to a Georgetown synagogue

Read More

More Headlines