However, the stock price began falling almost immediately after hitting the open market, and shares ended down 5 percent at $9.50. That pattern didn't change Monday morning, as Zynga stock slid down to $9 less than an hour and a half into the day's trading session.
The share price continued to descend later, as the stock hit $8.77, a loss of $0.73, or 7.7 percent, at 8:10 a.m. PST.
Zynga's stock is probably hurt from a large offering and increased competition, analysts said Friday.
The 100 million shares Zynga offered represent 15 percent of the company, a much larger offering than other recent tech IPOs such as LinkedIn, Groupon and Jive, which all offered less than 10 percent. That decision led to the inability of individual investors excited about the stock to raise the price, said Sam Hamadeh, CEO of PrivCo.com, which compiles financial data on private companies.
Meanwhile, more established video game companies, such as Redwood City's Electronic Arts (ERTS), are moving in on Zynga's dominant role in the social gaming category.
"The competition has game now," said Jeff Matthews, a veteran money manager who doesn't have a stake in Zynga. "(Zynga's) product momentum probably peaked last year." For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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