Saturday, December 17, 2011

Dot.com 2.0 - opportunity or bubble?



Zynga Inc. debuted on NASDAQ, yesterday. The company shares felt by -5.00% to $9.50 from the IPO price.

Zynga is the fourth high profile internet company that offered its shares to the public this year - after LinkedIn, Pandora and Groupon.

So what the performance of these companies have been so far? Mixed.

  • LinkedIn  +46.31% from $45 IPO price
  • Pandora   -34.05% from $16
  • Groupon  +15.20% from $20

In total, the portfolio comprising of equally weighted four internet companies bought at IPO would bring +5.61% till yesterday. In the meantime, S&P500 lost -9.22% and NASDAQ -9.49%.

So, do we have a new buying opportunity of a life time or the next dot com bubble?




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