There are two notable IPO’s coming this November, that are worth the time to investigate. Zynga, the maker of Farmville, CityVille, and Mafia wars (along with other titles) are expected to have an IPO sometime around Thanksgiving. The amount that Zygna is trying to pull in – a Cool $1 billion. Not to shabby for a company who’s games have the graphics of a similar to a Super Nintendo game. Make no mistake though, Zynga has become a core part of Facebook and traffic to their games is only getting higher.
Currently Zynga has 232,000,000+ active users and generated revenues of $850 mil in 2010. The company has over 2200 employees and actually is making a profit. The questions yet still to be answered are: Is Zygna a fad that will decline and will Zygna have any more home runs. Most of Zygna’s revenue comes through in game purchases of their virtual goods and not through advertising, so the goal here is to keep people playing. This is sure to be a volatile stock in the next few years (for good or bad).
The symbol for Zynga will be : ZNGA.
Next we move onto Groupon, a facilitating online retailor who is not the only one trying to capitalize on people looking for deals and retailers looking to sell. Groupon’s IPO is most likely going to clock the company’s value in at around 10 to 12 billion dollars, which is mind blowing for a service based deal site. The site does have an Alexa rating (rating of activity and popularity on the internet) of #312, but does this company really have something that competitors do not? I can understand how this company has room to grow, but I’m skeptical of this valuation. I would love to really see the books and get a feel for the company, but as it stands – I’ll be avoiding this IPO.
Get ready to see these stocks in the news this month.