An analyst for J.P. Morgan has estimated that the actual real-world value of Zynga stock is smaller than that of the physical assets of the company, which is a bad sign for the overall health of the social game developer.
Doug Anmuth believes that cash on hand, securities and the property that Zynga currently has are worth close to 2.50 dollars (1.94 Euro) per share issued, while the real-world value of the stock is currently under 2.35 dollars (1.88 Euro).
This means that investors have very low confidence in Zynga and the company might have financial problems in the coming months, which might lead to a round of layoffs and an even lower share value.
Zynga went public in late 2011 and has managed to get more than 1 billion dollars (777 million Euro) in funding.
The company based its success on the huge audience that its Facebook social titles, like FarmVille, have drawn, but newer games have failed to replicate their performance.