Shares of the FarmVille maker were trading below Zynga's IPO price on Friday.



NEW YORK (TheStreet) --Zynga(:ZNGA) shares popped 10% to open at $11 during the company's Nasdaq debut on Friday before falling below its IPO price.

Shares of the Farmville maker were trading as low as $9.75 after the IPO valued the company at $7 billion. Still, Zynga raised $1 billion, making the stock offering the largest since Google's(:GOOG) in 2004.

Zynga's relatively weak performance comes on the heels of hot offerings from other Internet companies.

LinkedIn(:LNKD) shares more than doubled in their market debut in June, while Pandora(:P) surged 63% during its first day of trading .

This week, shares of Jive Software(:JIVE), which makes Facebook-like social networks for businesses, shot up 27% during its IPO.

Zynga on Thursday priced at the top of its expected range of between $8.50 and $10 a share, though analysts were mixed about the company's performance in the public markets.

Hudson Square analyst Daniel Ernst remains "positive on the offering" and believes its valuation is reasonable.

Sterne Agee analyst Arvind Bhatia, meanwhile, has already initiated coverage of the company with an underperform rating and said the company's valuation is "not justified."

Zynga's valuation is more than that of video game competitor Electronic Arts(:ERTS) with a $6.8 billion market cap but less than Activision(:ATVI) with a $13.6 billion market cap.

Last year, Zynga generated a profit of $90.6 million on revenue of $597 million. The company makes money from the sale of virtual goods, such as chickens or cows for its FarmVille game.

The company makes four of the five most popular games played on Facebook and forks over 30% of its revenue to the social networking giant.

Zynga is going public during a volatile time for IPOs. Last week, five companies withdrew or postponed their offerings, according to Renaissance Securities.

--Written by Olivia Oran in New York.



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