Zynga Drags Down Facebook Shares and 4 Social Media Stocks to Watch
Facebook, Inc. (NASDAQ:FB) relationship with Zynga has brought in tons of money due to the success of games like FarmVille, but along with that, bad news for Zynga is also bad news for Facebook. A week ago, Zynga revealed its “preliminary financial results” a few weeks before its official earnings report, not usually a good sign. The FarmVille maker reduced its outlook for 2012 due to several problems like “reduced expectations” for certain games, delays in launching new titles, and a large write-down on its purchase of game maker OMGPOP.
LinkedIn Corporation (NYSE:LNKD) revealed their “Most InDemand Employers” list for 2012, and Google has made number one. This year, tech companies had a strong showing as they claimed the list’s leading four spots. The order of the top five were Google, Apple, Microsoft, Facebook, and Unilever.
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Groupon, Inc. (NASDAQ:GRPN): For months, YCharts has said that Groupon should purchase OpenTable. Now, Groupon has bought Savored , which is a lesser known restaurant reservation system, for undisclosed terms. Instead, Groupon has launched an application for restaurants, building upon its acquisition from four months ago of a company named Breadcrumb. This point-of-sale system will replace a cash register, and it will let the user do other things as well, like manage time clicks, TechCrunch reports. This along with the acquisition of Savored makes it appear as if Groupon is attempting to create competition for OpenTable.
Pandora Media, Inc. (NYSE:P): SoundExchange, which is a nonprofit group collecting and distributing royalties, according to legislation supported by Pandora would harm musicians and record labels by lowering their royalties, Bloomberg reported, citing SoundExchange President Michael Huppe.
Zynga, Inc. (NASDAQ:ZNGA) isn’t a stock sought out among technology investors anymore. The firm’s latest revised guidance for last quarter resulted in its share price being depressed and traders being skeptical of the firm’s entire business model. According to a Piper Jaffray report about the social gaming company, there has been a decline in the popularity of the business, and the firm thinks it will continue. The firm gives a twelve month price target of $3 dollars on the stock.