GO
Loading...

Zynga IPO Offers Plenty of Upside, Analyst Says

One “Fast Money” analyst sounded positive on the highly anticipated Zynga IPO, citing the company’s potential for growth.

“It’s currently the leader in the social gaming space. It has 54 million daily active users, which is more than the next 14 game developers combined,” said Stephanie Chang, research analyst at Renaissance Capital.

Zynga, which priced shares at $10, will hold its initial public offering Friday under the symbol ZYNG. The initial share price will give the company a valuation of $7 billion.

Chang said Zynga would be able to avoid the trend of Internet and social media companies seeing a drop in their post-IPO share prices, calling the “Farmville” developer “distinguished” from other game developers.

“Zynga’s a completely different animal,” she said.

Chang said Zynga’s margin profile was significantly more attractive than a lot of other online companies. She also pointed to the company’s exposure to an estimated 3 percent of Internet users, which gave it potential advertising potential of $1.5 billion.

“That’s a source of growth they haven’t even tapped into yet,” she said.

Chang’s position stood in contrast to a Sterne Agee analyst placing a "sell" rating on Zynga earlier this week.

Either way, Stephen Weiss wasn’t tempted.

“I think the issue with all these IPOs right now is that there’s no investor loyalty, so the market gets a little rough and the first stocks that go are the ones they just bought, they really don’t know,” he said.

Weiss said it was difficult to know who planned to own the stock and who looked to flip it.

“I’m not going to buy the stock,” he said. “I would wait until it trades down and finds a real shareholder base.”

Related Stories

______________________________________________________
Got something to to say? Email fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you prefer to comment but not have it published online, email fastmoney@cnbc.com.

Trader disclosure: On Dec. 15, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Finerman owns BAC and AAPL; Adami owns AGU, MSFT, NUE, BTU, C, GS, INTC.; Najarian is long AAPL; Najarian has BAC long calls; Najarian has JPM calls; Najarian has WFC calls; Najarian is long INTC; Najarian is long YHOO; Terranova is long VRTS; Terranova is long IBM; Terranova is long LQD; Terranova is long MUB; Terranova is long EMC; Terranova is long CSCO; Terranova is long AXP; Terranova is long TRLG; Terranova is long SBUX; Terranova is long SWN; Terranova is long SU;

Karen Finerman
Finerman’s firm owns AAPL AND short calls

Finerman’s firm owns JPM and leaps

Finerman’s firm owns IBM and short calls

Finerman owns JPM and leaps

Stephen Weiss
Weiss is long JPM

Weiss is long QCOM

Weiss is long SDS

Weiss is long TWM

Weiss is long WLP

Weiss is long BRCM

Weiss is long HPQ

Weiss is long EUO

Mike Khouw
Cantor Fitzgerald is a market maker in securities of AAPL

Cantor Fitzgerald is a market maker in securities of BAC

Cantor Fitzgerald is a market maker in securities of C

Cantor Fitzgerald is a market maker in securities of XLF

Cantor Fitzgerald is a market maker in securities of GOOG

Cantor Fitzgerald is a market maker in securities of JPM

Cantor Fitzgerald is a market maker in securities of GDX

Cantor Fitzgerald is a market maker in securities of MS

Cantor Fitzgerald is a market maker in securities of NFLX

Cantor Fitzgerald is a market maker in securities of ORCL

Cantor Fitzgerald is a market maker in securities of GLD

Cantor Fitzgerald is a market maker in securities of XLU

Cantor Fitzgerald is a market maker in securities of TLT

Cantor Fitzgerald is a market maker in securities of GS

Cantor Fitzgerald is a market maker in securities of RIMM

Cantor Fitzgerald is a market maker in securities of FRX

Cantor Fitzgerald is a market maker in securities of THOR

Cantor Fitzgerald is a market maker in securities of WBMD

Cantor Fitzgerald is a market maker in securities of FDX

Cantor Fitzgerald is a market maker in securities of UPS

Cantor Fitzgerald is a market maker in securities of EXPD

Cantor Fitzgerald is a market maker in securities of SBUX

Cantor Fitzgerald is a market maker in securities of NVLS

Cantor Fitzgerald is a market maker in securities of PHM

Cantor Fitzgerald is a market maker in securities of FSLR

Cantor Fitzgerald is a market maker in securities of DECK

Cantor Fitzgerald is a market maker in securities of TRIPV

Cantor Fitzgerald is a market maker in securities of CVX

Dan Dicker
Dicker owns SLB

Dicker owns RIG

Dicker owns APA

Michael Chertoff
No disclosures

Stacy Widlitz
Widlitz owns LULU

Colin Gillis
RESEARCH IN MOTION (RIMM): Investment banking (next 3 months): BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report.

Lead or Co-manager: BGC Financial LP and/or its affiliates, has not acted as lead or co-manager in a public offering of equity and/or debt securities for Research in Motion within the last 12 months. BGC Financial LP and/or its affiliates has not received compensation for investment banking services in the last 12 months from Research in Motion.

Taposh Bari
Nike (NKE), VF Corporation (VFC), and Wolverine Worldwide (WWW): As is the case with all Jefferies employees, the analyst(s) responsible for the coverage of the financial instruments discussed in this report receives compensation based in part on the overall performance of the firm, including investment banking income. We seek to update our research as appropriate, but various regulations may prevent us from doing so. Aside from certain industry reports published on a periodic basis, the large majority of reports are published at irregular intervals as appropriate in the analyst's judgment.

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report

  • Bill Nygren, Oakmark Fund, explains why Apache, Bank of America and Google will be winners in 2015.

  • Nick Tiller, Sustainable America founder and chairman, tells CNBC's Kate Kelly oil prices are poised for a tradable rally. Tiller likes the Brent ETF and energy sector.

  • Discussing interesting trends contributing to the market's rally into year's end, with the FMHR trader Josh Brown and Dan Greenhaus, BTIG.