What Makes Zynga A Wall Street Darling

Jan. 3.12 | About: Zynga (ZNGA)

If you're unfamiliar with the honey badger, I suggest you watch this video. Or if you like, the meme version (some profanity). Mark Pincus is Founder and CEO of Zynga (NASDAQ:ZNGA). Mark Pincus is like a honey badger.

Click to enlarge

Photo sources credited via Wikipedia.

The honey badger hails from the "eat or be eaten" lands of Afro-Eurasia. Mark grew up in Chicago. The honey badger, while adorable and unassuming, is aggressive, direct, opportunistic, and thick-skinned. Does this attitude remind you of Chicago?

The honey badger is named for its pastime of eating beehives alive. Zynga is a social media company capitalizing on swarm behavior. Zynga bites open your social network and feasts on the larvae of your expendable income.

According to Wikipedia, the h-badger may utilize a suffocating odor to overwhelm bees while ransacking the hive. Zynga overwhelms your friends with its repugnant status updates. "Your Friend Amy is trying to get a Level 3 Sniper Rifle in Mafia Wars. Join now to help her and receive 50 purple tokens." Perhaps you've heard of hypnosis induction, in which one seeks to induce a trance through overload. Zynga uses the badgering trance.

The honey badger digs for dinner, and habitates in holes. Pincus is a tenacious data miner. Before Zynga, game design was an art form, perhaps even a game in and of itself. Now it's a business. If you have ever dug a hole manually, or taken a statistics course, you know that it's not easy, and you can see how beastly these characters are.

The honey badger is small enough to outmaneuver snakes, and large enough to threaten humans. Pincus is small enough and progressive enough to maintain a thought leadership role in Silicon Valley, while large enough and conservative enough to attract Rupert Murdoch on Twitter.

The honey badger eats virtually anything ("honey badger don't care"). In startup parlance, "eating" means taking over the work of a company. A company like Microsoft might do this by buying a company. Zynga, like the honey badger, simply takes what it wants.

The honey badger is ruthless. The perfect animal for Wall Street. Some say social media and cloud companies are a bubble. They say Zynga is a fad. I say, the honey badger can run a marathon. Probably after eating the tortoise and the hare.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ZNGA over the next 72 hours.