Zynga, which debuted the largest technology IPO since Google on Friday, saw shares drop in early morning trading on the second day listed on the Nasdaq. On Friday, Zynga closed 10 percent below its opening trade of $11 per share, after pricing on Thursday evening at $10 per share. This morning, Zynga opened at $9.36 but dropped as much as 5 percent in morning trading. Update: Zynga shares closed at $9.05, down 4.75 percent. During daytime trading, shares fell as low as $8.75.
Unlike some of the other tech IPOs that have listed this year, Zynga didn’t see a huge pop in the first day of trading. The company offered 100,000,000 shares of Class A common stock in the offering, raising $1 billion.
A number of recently public tech companies have dropped below their opening price over the past few months. As The New York Times cites, macroeconomic conditions and “jittery investors” are contributing to these stumbles. What makes Zynga so surprising is the that the company’s valuation is about half of where early reports were speculated it would be.
Zynga’s drop could also be influenced by the conditions of the market, which seems to be down today.
Of course, it is still only the second day of trading and the company’s shares could rebound. As Zynga chief operating officer John Schappert told our own Eric Eldon last week, Zynga is here for the long-term and its investors should be thinking that way, too.