Zynga Inc Class A (ZNGA): Today's Featured Internet Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Zynga Inc Class A ( ZNGA) pushed the Internet industry higher today making it today's featured internet winner. The industry as a whole closed the day up 0.4%. By the end of trading, Zynga Inc Class A rose 24 cents (7%) to $3.67 on heavy volume. Throughout the day, 98.4 million shares of Zynga Inc Class A exchanged hands as compared to its average daily volume of 21.6 million shares. The stock ranged in a price between $3.46-$3.75 after having opened the day at $3.55 as compared to the previous trading day's close of $3.43. Other companies within the Internet industry that increased today were: ModusLink Global Solutions ( MLNK), up 13.8%, AOL ( AOL), up 7.4%, Rediff.com India ( REDF), up 6.9%, and Angie's List ( ANGI), up 6.4%.
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Zynga Inc. develops, markets, and operates online social games as live services on the Internet, social networking sites, and mobile platforms. Zynga Inc Class A has a market cap of $1.8 billion and is part of the technology sector. The company has a P/E ratio of 44.1, above the S&P 500 P/E ratio of 17.7. Shares are up 30.9% year to date as of the close of trading on Friday. Currently there are three analysts that rate Zynga Inc Class A a buy, one analyst rates it a sell, and 14 rate it a hold.

TheStreet Ratings rates Zynga Inc Class A as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

On the negative front, Deltathree ( DDDC), down 13.3%, Bitauto Holdings ( BITA), down 4.8%, TechTarget ( TTGT), down 3.9%, and LiveDeal ( LIVE), down 3.7%, were all laggards within the internet industry with Youku Tudou ( YOKU) being today's internet industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).

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