• Michael Weeding

Making Money from the Facebook IPO

I have been reading with interest (and envy) about all the millionaires that are going to be made as a result out of the Facebook IPO. I then started to look beyond Facebook and to companies that associated with Facebook whose stock price could also benefit from the Facebook listing.

Zinga (ZNGA) is an example of one of those companies whose large part of their online gaming revenue comes from users playing games via Facebook. The growth of Facebook’s users base will have a positive benefit on this company so as a result they are well positioned to benefit from the Facebook growth and their share price reflected postively with the share pricing moving 20% in one days trading.

There are lots of tweets in the last month from people looking to get their hands on some Facebook stock before the IPO. Peter Leeds an analyst from Penny Stocks notes that with over hyped IPOs the stock gets driven up only to come crashing back to earth a few days later. So maybe the real winners out of the IPO for investors who did not get hold of Facebook stock many years ago will be the ones who invest in companies like Zinga.


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