Are Buyout Rumors Going to Help This Tech Stock Soar? (ZNGA)

Are Buyout Rumors Going to Help This Tech Stock Soar?

Many of the worst-performing IPO stocks from 2011 have recently soared from the lows they saw last year. Notably among them, shares of social-game dynamo Zynga have soared an impressive 60% since the start of 2013. A major part of this pop has been speculation about a potential buyout of Znyga. On Monday, a fresh set of rumors sent Zynga higher still. However, what do they really mean for this fallen angel? In the following video, we break down how investors should look at Zynga.

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.

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Comments from our Foolish Readers

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Report this Comment On March 13, 2013, at 12:50 AM, Retaility wrote:

What a joke. Some analyst basically says "gee you know, yahoo is looking for acquisitions, they COULD buy Zynga on the speculation of gambling revenues in 2 years" and the stock surges without anything remotely material. See Nick Chiu's article for a dose of reality
Report this Comment On March 13, 2013, at 1:51 AM, Mark2013 wrote:

I won't be basing my knowledge and investing since 1980 and style on what a kid just starting out on current video has to say but give him just 15 more years and he might know more what he's talking about. I give him A+ for broadcasting but a D- on knowledge which is average for his age. No Bill Gates on the way up there.
That said, ZNGA is becoming a powerful company off a bad start, is going to $20 this year and has no need to be bought-out. Give it 3 years and at $50, it will be doing buyouts.
Anyone who bought based on buyout rumors do not belong in the markets but those who understand the business model and huge cash on hand for a new company are shrewd buyers.
JMO
Report this Comment On March 13, 2013, at 2:47 AM, allworld23 wrote:

The Motley fool, "hates" Zynga. For what reason? I would really like to know.
The Motley Fool should realize that Zynga is a company that has, "enormous upside potential". The upside to this stock is far ahead of the remaining downside. Zynga has lost several managerial positions only because these managers were not, "on the same team" for the internet gambling revolution.
Zynga has now positioned its, "pawns" for the on line gaming frontier which is about to become reality. WHOMEVER wants to try to buy out ZYnga is doing so because "ZYNGA ALREADY HAS THE ONLINE PLAYERS" playing for fun. These players will eventually migrate to real cash.
Watch and see. Zynga will be a POWERHOUSE in the online gaming industry. The chop is enormous and runs 24/7....Thats right....Every day and every night Zynga's rake of the gaming will be enormous. The Motley fool should back off this stock, because Zynga just might take off and bury the Motley Fool...
Report this Comment On March 13, 2013, at 10:07 AM, DigitalMediaView wrote:

The YHOO buy-out of ZNGA rumor was pure speculation without foundation and has been completely de-bunked. Michael Pachter, Wedbush: "The notion of Yahoo buying Zynga has 'zero credibility.'" http://bit.ly/WEZLvH
ZNGA's gambling aspirations are just that right now, aspirations. They are in poor position to operate online gambling enterprises any time soon. http://bloom.bg/14TcYza