Have Facebook and Zynga Finally Bottomed and Does It Even Matter?
However, let's take another review of Facebook's friend Zynga(ZNGA) , the "other" non-providential social stock affected by Facebook I have written about.
Zynga is almost in a no-win situation, and Wall Street knows it. The only ones who haven't figured it out yet are the investors who have owned Zynga for more than a few days. Professionals are so excited to short Zynga it's a challenge to find shares to borrow. For over eight weeks Zynga's short interest has spiraled higher. In the last reporting period of May 15, short interest ballooned to more than one out of every three shares on the market.
Zynga did manage to finish off the lows Friday at $6.05, about 15 percent below the price when I called it an "unmitigated train wreck." The article received an intriguing comment that essentially stated if I didn't call a top at $15 the "bashing" of Zynga was a little late. A 15 percent loss (and off the lows) within three weeks clearly demonstrates the importance of the analysis. A desire to "break even" is usually the sign of someone who, unfortunately, is going to face continued losses. "Breaking even" is never an acceptable reason to hold a position. (Read Facebook's Lessons in How Not to Play the Game.)