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Zynga’s first day as a publicly-traded company was more of a flop, than a big pop. And now the second day isn’t faring much better. Shares of the social media gaming company are down more than seven percent today, trading around $8.85.

That’s well below the $10 offering price. The San Francisco company, which maintains a development office in Seattle led by former executive Neil Roseman, raised $1 billion last week in the largest Internet IPO since Google.

But investors have not reacted as warmly to Zynga as other recent tech IPOs, including Zillow which continues to trade above its $20 offering price.

The concerns?

A big one is that 90 percent of Zynga’s revenue is tied to Facebook, which means a slight tweak in how the social networking powerhouse interacts with third-party applications could cause enormous harm. Zynga is attempting to diversify, but even so it is pretty wild to see a company that feeds off the back of a single platform be valued at $6 billion right out of the gate.

Zynga Chief Executive Officer Mark Pincus — who rang the opening bell on Nasdaq last Friday — took the normal PR course when responding to a question by Bloomberg News about the slumping stock price last week.

“We’re not experts on stock trading and we don’t intend to be,” Pincus said. “This story is going to play out over the next couple of years, not the next couple of trading days.”


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