Tylted CEO Lon Otremba gave a somewhat tilted explanation for the stock price crashes of Facebook and Zynga in recent weeks.
Otremba, who is moderating the “Money Gap?” panel at the Mobile Insider Summit in Tahoe, naturally, gave a money-oriented thought to prime the panel discussion. And his conclusion is that the stock prices have floundered from their initial public offerings, mainly because investors aren’t confident that they have strategies for moving from the “wired Web to the mobile Web.”
Personally, I don’t know, and I’m no stock market guru, but Otremba seems to have a valid point.
Facebook stock IPOed at about $38 per share, rallied to $41 and according to Otremba’s last check, currently is trading around $19.35. Zynga went public at $16-plus, and is currently trading “a hair over $3,” according to Otremba.
“It really is the fact that investors have lost faith for now – in both these companies’ ability to make that transition and capture audience… from the wired web to the mobile web,” Otremba asserted. Though I have a feeling that a few other factors have come into play, like the fact that they haven’t articulated long-term overall business models, and revenue strategies, not just for mobile, but for their underlying propositions.