In the video below, Fool senior technology analyst Eric Bleeker discusses the wild trading action in Zynga (NASDAQ: ZNGA ) during the past two days. Yesterday, it soared more than 14% but sagged more than 8% today -- on little news.
The wild trading can be partly attributed to the company's association with Facebook (NASDAQ: FB ) , which also traded up yesterday and dropped today. However, in the end, Eric thinks the most meaningful news for Zynga for the past couple of days might be peer Facebook-reliance gaming network Kabam announcing yesterday that it was profitable. That's a positive, since Kabam is moving from being a Facebook-heavy gaming company to a mobile player. However, Eric also warns that Kabam is less than one-fifth the size of Zynga. It's far more difficult to pull off a mobile transition for a company of Zynga's size than for a smaller $200 million one.
Zynga's post-IPO performance has been dreadful, and investors are beginning to wonder if it's "game over" for this newly public company. Being so closely tied to the world's largest social network can be a blessing and a curse. You can learn everything you need to know about Zynga and whether it's a buy or a sell in our new premium research report. Don't even think about picking up shares before you read what our top analysts have to say about Zynga. Click here to access your copy.