Zynga closed at $10.05 today — just a hair above its IPO price of $10 — for the first time since its trading debut after shooting up more than 6 per cent in trading today.A flurry of buy ratings (including one today from BTIG) and the prospect of Zynga expanding into online gambling have propelled it back to its starting point.
A new note from BTIG’s Richard Greenfield said Zynga’s strategy of creating a ton of games with the hope of players liking at least one game will work. Here’s what he said:
We expect Zynga’s increasingly aggressive game roll-out pace in 2012 and expanding portfolio of genres/gaming verticals to be a key catalyst behind our BUY rating.
Its stock has taken hit after hit since making its debut as a publicly traded company. But it looks like CEO Mark Pincus can finally breathe a sigh of relief now that he is once again a billionaire, based on his share of Zynga’s stock.