Monday, May 21, 2012

The Facebook Effect: Zynga, other stocks down

NEW YORK (AP) - Facebook's tepid start as a publicly traded company dragged other social media and related stocks lower on Monday.

Facebook Inc., which began trading on the Nasdaq Stock Market on Friday, fell $3.94, or 10.3 percent, to $34.29 in late afternoon trading on Monday. The company's initial public offering was one of the most hotly anticipated ones in history. But the resulting staggering valuation - more than $100 billion - likely gave investors pause as they sought to assign value to the world's largest online social network. Shares had closed up just 23 cents to $38.23 on Friday.

Shares of Zynga Inc., the online game maker whose 'Zynga Poker,' ''FarmVille' and other games are played primarily on Facebook, slid dipped 6 cents to $7.10 in afternoon trading. Shares had fallen as low as $6.36 earlier, the lowest value since the company's December IPO. Shares have risen as high as $15.91 since December.

Shares of professional networking service LinkedIn Corp. fell $1.02, or 1 percent, to $98. Shares of the company, which went public a year ago, have ranged from $55.98 to $120.63 since last May.

Jive Software Inc., which offers tools to run social networks for businesses, also dropped, giving up 36 cents, or 2.1 percent, to $17. The stock has traded between $14.18 and $28.15 since its December IPO.

Other Internet companies that have gone public over the past year fared better Monday. Shares of online deals company Groupon Inc. jumped 86 cents, or 7.5 percent, to $12.44. The stock, which started trading last November, has changed hands in the range of $9.63 and $31.14 since.



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