Seeking Alpha

King reverses course post-earnings; Zynga, Glu also off

  • Up premarket after posting a Q1 EPS beat and moderate Q/Q bookings growth, King Digital (KING -8.7%) has sharply reversed course. Concerns about softening Candy Crush Saga bookings and a Q/Q drop in monthly unique payers appear to be the triggers.
  • Peers Zynga (ZNGA -5.5%) and Glu Mobile (GLUU -5.6%) are also seeing decent losses amid a broader selloff in Internet stocks - in addition to King, Groupon, AOL, and Zulily are also down sharply post-earnings.
Comments (16)
  • albert55
    , contributor
    Comments (47) | Send Message
     
    Zynga is executing share buy back plan. It now has 685M shares as compared to 832M shares two days ago.
    7 May 2014, 10:46 AM Reply Like
  • tradingalpha
    , contributor
    Comments (100) | Send Message
     
    Albert, do you have a link to where you got this info?
    7 May 2014, 10:48 AM Reply Like
  • albert55
    , contributor
    Comments (47) | Send Message
     
    Contact the company to verify.
    7 May 2014, 10:54 AM Reply Like
  • againstalloddz
    , contributor
    Comments (48) | Send Message
     
    Zynga only approved 200 mill...how can it be reduced that much? Don't believe it until I see it...
    7 May 2014, 04:06 PM Reply Like
  • cheetah1234
    , contributor
    Comments (2) | Send Message
     
    also the avg daily volume for last 1 week does't add up to 150 mill buy back considering all the short selling going on
    7 May 2014, 04:31 PM Reply Like
  • tradingalpha
    , contributor
    Comments (100) | Send Message
     
    That's 17% reduction in shares, I would expect for price to go up by that percentage, not down as much as it did today.
    I guess we'll see price bump once news hit the press.
    7 May 2014, 11:32 AM Reply Like
  • jzheng220wz
    , contributor
    Comments (127) | Send Message
     
    Agree, Long ZNGA
    7 May 2014, 11:49 AM Reply Like
  • haleiwahu
    , contributor
    Comments (3593) | Send Message
     
    Why couldn't I long ZNGA at $3.52 instead of $4.24?
    7 May 2014, 02:56 PM Reply Like
  • wojiparu1
    , contributor
    Comments (51) | Send Message
     
    Long ZNGA as well. I own a large block avg in @ 3.54

     

    This with time will be much higher.

     

    Over a billion in CASH and great innovation
    7 May 2014, 11:52 AM Reply Like
  • tradingalpha
    , contributor
    Comments (100) | Send Message
     
    Plus, a very strong management team with over a billion dollars.
    Playing field and opportunities in many directions are significant, and I'm sure management sees and is taking advantage of that.
    7 May 2014, 11:57 AM Reply Like
  • Sellinpanic
    , contributor
    Comments (652) | Send Message
     
    The baby has been thrown out with the bathwater when considering GLUU. King is not GLUU and in this respect the market is totally blind and irrational. GLUU has nothing but posted stellar results the past two quarters showing unparalleled growth with a very bright future. I have been adding more GLUU at these bargain basement prices and it's close to equaling my big TSLA position.
    7 May 2014, 11:59 AM Reply Like
  • albert55
    , contributor
    Comments (47) | Send Message
     
    Share price will recover when the news is released. It often takes a few weeks to get the news out. Those who get the news ahead get to enjoy the big discount.
    7 May 2014, 12:07 PM Reply Like
  • cheetah1234
    , contributor
    Comments (2) | Send Message
     
    i doubt they can buy that much amount worth of stocks . they have only $200 mill approved in buy back fund
    7 May 2014, 04:09 PM Reply Like
  • KC1965
    , contributor
    Comments (30) | Send Message
     
    I lost so much from the market punishing Zynga.
    No Mother's day celebration for me (crying)
    8 May 2014, 09:57 PM Reply Like
  • mako26
    , contributor
    Comments (244) | Send Message
     
    zynga is tough. i got in at 2.90 sold half at 5.50 and now its headed that way again crazy. i might go back in.
    9 May 2014, 02:09 AM Reply Like
  • KC1965
    , contributor
    Comments (30) | Send Message
     
    The market doesn't make sense. Vringo has only $24m cash, Zynga has more than $1 Billion cash. Yet both are trading at the same price. Based on cash alone, Zynga is worth more than $6 a share.
    9 May 2014, 12:45 PM Reply Like
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