On 16 December 2011, Zynga's IPO was listed at $10/share. The stock fell the first day to $9.50/share and then plunged to $8/share by 8 January 2012. But "times are a' changin'" with the announcement of Facebook's IPO filing.
According to Facebook's IPO filing, Zynga accounts for a full 12% of the company's revenue. That is staggering.
While Facebook could always replace Zynga that appears unlikely. Zynga has carved our unique niche and it is fortunate to be tied the behemoth Facebook. While Zynga's investors have worried about the stability of the relationship, Facebook expressed its own concern recognized by how much value Zynga is to Facebook.
Therefore, to no one's surprise except maybe for those who have been shorting Zynga, the company ended Thursday's trading day at $12.39/share, a near 17% jump in the share price.
As a result, investors may have a very short window to get into a run in Zynga's share price which I gauge could easily go over $20/share within the next week.
I am issuing a very bullish alert.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional Disclosure: Investors buy and/or sell at their own risk. After 72 hours of publication, I am free to buy and/or sell any stock mentioned in this article according to SA policy.