3 Buzzing Social Media Stocks: Zynga’s Racy Lawsuit, Facebook Breaks IPO Barrier, and Groupon Reserve Targets Mobile Engagement
Zynga (NASDAQ:ZNGA): Zynga is bringing the creator of Bang with Friends, a “casual sex matchmaking app,” to court over the name of the app — Zynga says it infringes on its Words with Friends and Chess with Friends games. Bang With Friends Inc. “selected the name Bang With Friends for its casual sex matchmaking app with Zynga’s game trademarks fully in mind,” Renée Lawson, Zynga’s deputy general counsel, said in a statement.
Facebook (NASDAQ:FB): Following its post-quarter stock run, Facebook’s new valuation has put the social media site back around its $38 initial public offering price, which the company so infamously fell far behind on. The company even traded above its IPO price briefly on Wednesday, hitting $38.31 as investors realized that the company is capable of monetizing its tremendous mobile presence. “Facebook was caught flat-footed by the shift to mobile,” said Mark Mahaney, an analyst with RBC Capital Markets. “It took them four or five quarters to catch up.”
Groupon (NASDAQ:GRPN): With Groupon Reserve, released earlier this month, Groupon is hoping that its table-holding program will help spur mobile growth for the company, which is slowly getting back to its feet. TechCrunch says that North American mobile Groupon customers spend around 50 percent more than those who only browse on the Web, making it a lucrative channel to exploit. Groupon adds that Reserve has drummed up renewed interest from merchant partners and has driven a lot more traffic to its B2B sales site.