Seeking Alpha
Seeking Alpha Portfolio App for iPad
Finance
(1)
Market Currents

Zynga (ZNGA -9.2%) ended an ugly day trading 20% below its IPO price. Aside from Playdom's (DIS)...

  • Monday, January 9, 2012, 6:30 PM ET
    Zynga (ZNGA -9.2%) ended an ugly day trading 20% below its IPO price. Aside from Playdom's (DIS) unveiling of Marvel: Avengers Alliance for Facebook, there wasn't any noteworthy news to move shares. But bearish opinions are easy to find: Dave Thier argues Zynga's problem is that rising customer expectations force it to develop more expensive games to generate the same amount of revenue, all while competition grows.
Track new comments on this story

This news story has 4 comments:

  •  
    High customer expectations for the same price while competition increases? That sounds just like NFLX, though NFLX was up over 10% on the same day. Short NFLX or long ZNGA?
    9 Jan 2012, 06:38 PM Reply Like
  •  
    ZNGA has comfortable margins. I suggest reading Dave Thier's article for yourself. Long ZNGA
    9 Jan 2012, 08:21 PM Reply Like
  •  
    Will our kids ever get their noses out of games and take a breath of fresh air? If they do, bye bye games.
    9 Jan 2012, 10:18 PM Reply Like
  •  
    As much as I hate Zynga and its products, this stock is way underpriced right now. We are seeing the bottom of a valley (or close to it) with the 8.00 share price today.

    This is a good opportunity to buy a cheap stock that could deliver substantial returns (25%+) in the very short term. I think the downside risk is relatively low, as I do not see the share price dropping beneath 7.00, at least in the short term.
    10 Jan 2012, 11:44 PM Reply Like
LATEST|
TODAY SO FAR|
YESTERDAY
Other date
DJIA (DIA) S&P 500 (SPY)

TECH ETFs IN FOCUS

Latest Tech Articles
More Latest Articles »