3 ms·
But what about long-term value? It may hit tens of billions the first day, but what happens in a few months?
by ignifero 15y ago
But what about long-term value? It may hit tens of billions the first day, but what happens in a few months?
- afterburner 15y agoMost people will be thinking: "who cares."
- hugh3 15y agoI like it when that happens, it creates an opportunity for those who do think ahead to profit. I don't usually dabble in options, but if Zynga is at some crazy valuation shortly after the IPO then I just might acquire some long-term puts. (Or is it calls? I forget, I don't usually dabble in options...)
- nikcub 15y agothe barrier of entry to derivatives is simply knowing what they are, which thankfully is often high enough for most people not to face a margin call and lose everything
- benmccann 15y agoPuts, but I don't think you'll be able to. Type LNKD into finance.yahoo.com and notice how the options tab is greyed out.
- nikcub 15y agoWhen the economy picks up again it will likely go on for a while. Zynga built a multi-billion dollar business in a recession. I wouldn't go short on either of those stocks, especially considering how much demand there is in the public markets for something new. We are witnessing a 5-year backlog of public listings
- Aloisius 15y agoI wouldn't dismiss the idea that Zynga is only popular because of the recession. After all, their userbase is the same as the daytime soap opera watchers - people without jobs.