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In all likelihood most of the fund managers involved have investment horizons longer than the two days that ZNGA has been trading, so declaring them in error se
by rgarcia 15y ago
In all likelihood most of the fund managers involved have investment horizons longer than the two days that ZNGA has been trading, so declaring them in error seems incredibly premature.
- joezydeco 15y agoSo that implies the fund managers have looked at Zynga's long-term prospects and found them to be good, right? So why is the market acting in a different manner? Do the fund managers know something the street doesn't, or vice-versa?
- rgarcia 15y agoThe majority of short-term market participants have deemed Zynga's two-day prospects to be poor, and correctly so. The factors that influence them, for the most part, are very different than the factors that long-term investors look at/care about. In fact, it's entirely possible that the IPO participants are making money in the meantime lending their stock to short-sellers. Yes, the funds that participated in the IPO have a loss on paper, but so does the person who buys a house and sees that interest rates dropped 0.00001% the next day.