The following is an excerpt Michael J. De La Merced | December 23, 2011 | Nytimes.com | Picture on left:Mark Pincus, left, chief of Zynga, and Andrew Mason, chief of Groupon |
This holiday season, investors seem to prefer real deals to virtual sheep.
It’s been several weeks since Groupon and Zynga went public. Yet it’s striking how the two companies have performed in the marketplace since their initial public offerings.
Groupon shares have fallen 15.4 percent since spiking on their Nov. 4 debut. Yet at $22.10, they still remain above their $20 initial offer price. Zynga shares have tumbled 14.5 percent since beginning trading last week, and at $9.47 remain below their I.P.O. price of $10.
It is perhaps more surprising given the amount of trouble Groupon raised during its run-up to going public. There were the controversial accounting measures, the inopportune comments from its chairman, the much-debated letter from its chief executive and its revenue restatements.
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