December 16th, 2011
Zynga went public on Friday the 16th. Opened at $10, closed at $9.50
Groupon opened in November at $20 and closed at $26. (Up 30%)
LinkedIn opened at $45 and skyrocketed to $122 (Up 37%)
Let's check out their current prices, and analyze some potential factors over the last 2 years that influenced them.
Zynga, (12/31/13) opened at $3.86 (-$6.14)
On October 4th of 2011, Zynga reported their full 2011 financial results, which apparently spooked alot of investors, because that's when they started jumping ship. It seems Zynga never fully recovered after that announcement, and remained hovering right around the $3 mark for the next 2 years.
Groupon (12/31/13) opened at $11.45 (-$8.55)
Groupon fared slightly better, however it also took a dive because of some public events discussing the financials and stocks. For instance, on 6/13/12, the CFO presented at the William Blair Growth Stock
Conference. That's when Groupon took its first small nosedive. Shortly after, on 8/13/12, Groupon announced their 2nd Quarter 2012 results. The stock took a very slight upturn, but stayed low. It wasn't until the 4th quarter announcement and a leadership change that it began to recover.
LinkedIn (12/31/13) opened at $215 (+$170)
As we saw with both previous examples, a sudden decline or incline usually takes place during the same month that a quarterly financial result is provided. LinkedIn was no exception, as we can see during the release of the 3rd Quarter Financials on 11/1/12 and continued climbing through April of 2013. A sharp decline occurred in May, again coinciding with its 1st Quarter Financial results. This "decline" could actually be the stockholders simply refraining from trading, as the price increased again sharply soon after everyone had read the results and were confident in the company's future.
