The social games developer has tumbled 9.6% since Monday after it sold off on a disappointing IPO from competitor King Digital (KING) on Wednesday. King, maker of popular app Candy Crush, closed 15.4% lower than its offering price on the day of its debut as investors grew concerned as to whether it could maintain its popularity over the long-term.
On Thursday, SAC Capital filed documents with the SEC notifying of its ownership of 38.7 million Zynga shares, or a 5.3% stake in the gaming company. In its 13-F filing at the end of 2013, the firm disclosed its ownership of 15.8 million shares.
By early afternoon Friday, shares are unchanged at $4.47.
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TheStreet Ratings team rates ZYNGA INC as a Sell with a ratings score of D+. The team has this to say about their recommendation:
"We rate ZYNGA INC (ZNGA) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow."