Zynga Stock Downgraded By JP Morgan
On the heels of Zynga’s announcement that they were in the beta stage of the “Zynga Platform,” the Wall Street Journal is reporting that JP Morgan is downgrading their rating to neutral due to an “increased investor focus on social gaming, the potential for legalization of online gambling, and optimism in the soon-to-be launched Zynga platform,” J.P. Morgan analyst Doug Anmuth wrote. “We are also positive on these fronts, but we believe some of the potential upside is now being factored into the stock and it will likely take some time for both online gambling and Zynga.com traction to materialize.”
Their stock rose 12% Since announcing their new platform to get players off of Facebook and onto something they have more control over. Until yesterday when it fell back 6% to $13.78. The grim outcast by the WSJ is partially due to Zynga reaching away from their Facebook comfort zone and partially due to the markets concern that another dotcom bubble is going to burst again.
Zynga is a social network game development company located in San Francisco, California. Founded by Mark Pincus in April of 2007. According to the company’s website, as of December 2009, it had 60 million unique daily active users.