Market: ($ZNGA); ($FB)
Chart:
Chart Analysis:
Could this be the last straw for social media gamer, Zynga ($ZNGA)? After announcing it will expect another quarterly loss and slashing its 2012 outlook, traders sent shares of the company down over 16% during intraday trading. As most active investors are aware, Zynga’s online gaming products has close ties to social media giant, Facebook ($FB). Our NinjaTrader Chart of the Day powered by Kinetick’s Free End of Day data examines the daily price action of the two companies since both companies announced their IPO’s. Throughout the summer, both companies witnessed dramatic downside moves from their IPO price reaching supporting levels at the beginning of September. Since its IPO, $FB shares had its best month increasing $5/share with the announcement of reaching over 1 billion users. However, $ZNGA did not reap the benefits of this news and has since continued to turn downward. They say the first year of marriage is the most difficult and nothing could be more evident than the marriage between Facebook and Zynga. How will the remainder of 2012 play out between these two companies? Does Zynga have new products to attract revenue? Does Facebook have something in store to monetize their 1 billion users? Only time will tell, but active investors could see trade setup opportunities as social media and tech companies frequent headlines worldwide with breaking news announcements.
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