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

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 lower today making it today's featured Internet laggard. The industry as a whole closed the day down 1.7%. By the end of trading, Zynga Inc Class A fell 12 cents (-3.9%) to $2.96 on heavy volume. Throughout the day, 48 million shares of Zynga Inc Class A exchanged hands as compared to its average daily volume of 27.8 million shares. The stock ranged in price between $2.84-$3.05 after having opened the day at $3.02 as compared to the previous trading day's close of $3.08. Other companies within the Internet industry that declined today were: Synacor ( SYNC), down 38%, Deltathree ( DDDC), down 15.6%, Remark Media ( MARK), down 8.1%, and HealthStream ( HSTM), down 5%.
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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 $1.9 billion and is part of the technology sector. The company has a P/E ratio of 46.4, above the S&P 500 P/E ratio of 17.7. Shares are up 37.7% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Zynga Inc Class A a buy, one analyst rates it a sell, and 13 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 positive front, HomeAway ( AWAY), up 13.3%, China Finance Online ( JRJC), up 4.5%, TechTarget ( TTGT), up 2.2%, and Selectica ( SLTC), up 2%, were all gainers within the internet industry with Groupon ( GRPN) being today's featured internet industry leader.

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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