Facebook filing for IPO Wednesday did good for more than just the social network. Companies associated — even tangentially — saw their stocks soar in trading Thursday.
As the largest Internet IPO to date, Facebook's plan to raise $5 billion lured investors to pour money into similar web companies.
Zynga did particularly well on the market Thursday, following a statement in Facebook's S-1 saying the social game maker generates 12% of the company's revenue. Zynga rose 16.84% in trading, finishing the day at $12.39 per share.
"We currently generate significant revenue as a result of our relationship with Zynga, and, if we are unable to successfully maintain this relationship, our financial results could be harmed," read Facebook's S-1.
Facebook takes a 30% cut of all virtual goods sold through Zynga games such as FarmVille and CityVille, which results in significant profits. Of Facebook's $3.71 billion in sales in 2011, $445 million was generated by Zynga. While some investors had considered Zynga a risky investment due to its dependent relationship with Facebook, it became clear Wednesday that Facebook too is dependent on Zynga.
Despite no direct business relationship, professional social network LinkedIn saw a 6.37% increase in share values. Renren, often called China's Facebook, saw shares rise 8.18%. The revenue generated by Facebook, as was detailed in the S-1, likely encouraged investors to buy stock in social networking companies.
Other Internet companies such as Groupon, Netflix and Pandora also saw their shares rise in trading Thursday.
Take a look through the gallery below to see the details of how Internet stocks fared Thursday. Do you think this is a good sign for Internet companies or could we be approaching another dot-com bubble burst? Sound off in the comments.
Previous close: $ 10.60
Closing: $ 12.385
Net change: 16.84%
Traded on NASDAQ
Previous close: $72.37
Closing: $76.98
Net change: +6.37%
Traded on NASDAQImage courtesy of iStockphoto, JasonDoiy
Previous close: $21.49
Closing: $23.08
Net change: +7.4%
Traded on NASDAQImage courtesy of iStockphoto, seewhatmitchsee
Previous close: $122.97
Closing: $124
Net change: +0.84%
Traded on NASDAQImage courtesy of iStockphoto, JasonDoiy
Previous close: $580.83
Closing: $585.11
Net change: +0.74%
Traded on NASDAQImage courtesy of iStockphoto, leezsnow
Previous close: $12.89
Closing: $13.32
Net change: +3.34%
Traded on NYSEImage courtesy SqueegyX, Flickr.
Previous close: $5.01
Closing: $5.42
Net change: +8.18%
Traded on NYSEImage courtesy China Social Media.
Previous close: $ 10.60
Closing: $ 12.385
Net change: 16.84%
Traded on NASDAQ
Previous close: $72.37
Closing: $76.98
Net change: +6.37%
Traded on NASDAQImage courtesy of iStockphoto, JasonDoiy
Previous close: $21.49
Closing: $23.08
Net change: +7.4%
Traded on NASDAQImage courtesy of iStockphoto, seewhatmitchsee
Previous close: $122.97
Closing: $124
Net change: +0.84%
Traded on NASDAQImage courtesy of iStockphoto, JasonDoiy
Previous close: $580.83
Closing: $585.11
Net change: +0.74%
Traded on NASDAQImage courtesy of iStockphoto, leezsnow
Previous close: $12.89
Closing: $13.32
Net change: +3.34%
Traded on NYSEImage courtesy SqueegyX, Flickr.
Previous close: $5.01
Closing: $5.42
Net change: +8.18%
Traded on NYSEImage courtesy China Social Media.
Additional Facebook IPO Coverage
- Facebook Files for $5 Billion IPO
- Facebook IPO Reveals How It Made $3.71 Billion in 2011
- 10 Giant Things Less Valuable Than Facebook
- Zuckerberg to Potential Shareholders: Facebook Is on a Social Mission
- Facebook IPO Filing Flings Open the Social Network Kimono
- Facebook: Zynga Generates 12% of Our Revenue and We Need Them
- Sheryl Sandberg Was Facebook's Best-Paid Employee in 2011
- Facebook: Here Are the 35 Things That Could Kill Our Company
- Facebook IPO: The Illustrated View
- Mark Zuckerberg Spent $700,000 Flying on Private Planes Last Year
- Facebook IPO: Reactions from the Social Web (and Zuckerberg)
- Will the IPO Change Facebook Forever?
- Facebook IPO: No, It's Not Groundhog Day for the Bubble
- Facebook's IPO: Reading Between the Lines
- The IPO Won't Change Facebook. Online Ads Will
Thumbnail image courtesy of Katrina.Tuliao and Crunchies2009 via Flickr
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