King Digital went public yesterday the 26th of March 2014 and the first day performance was -15.56%. It ended the day down $3.50 from the opening. But do not worry, it still has a market cap in the billions.
One should compare King Digital (KING) to Zynga (ZNGA). Looking back to 2012 Zynga was at $14 and now around $4. It is not the price that matters but the direction in which the price moves which effects the market cap of the company.
Worst 2014 IPO so Far
We are still in the first quarter of 2014 as of the writing of this post. However as you can see from the chart below, created by CNBC here, King Digital has had the worst first day performance of an IPO. What does that really mean? Just that the stock was potentially overpriced on the first day of trading. That does not mean it is a bad company or one that has any problems, just that the market felt it should have been priced slightly lower.