Zynga -9.8% following Mattrick presentation

Zynga (ZNGA) has plunged below $3 on volume (50.9M shares) that's already nearly 2x a daily average of 28.2M.

CEO Don Mattrick held a Q&A session yesterday afternoon at a BofA/Merrill conference (transcript). Though generally upbeat, he admitted Zynga could be affected by summer seasonality, and that near-term EBITDA margins remain pressured by product investments (e.g. bringing FarmVille to mobile).

Mattrick also: 1) Noted Zynga's headcount had fallen to 1,800 as of January from 2,650 at the time of his hiring; the NaturalMotion deal added 270 employees. 2) Declares Zynga's audience has "stabilized" after many quarters of steep DAU/MAU losses. 3) Suggests he's open to using part of Zynga's $1.1B+ cash balance on new acquisitions/partnerships.

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Comments (9)
  • Stone Fox Capital
    , contributor
    Comments (9505) | Send Message
    nothing new... buy the dip
    5 Jun 2014, 11:27 AM Reply Like
  • Beth Jones
    , contributor
    Comments (9) | Send Message
    5 Jun 2014, 11:41 AM Reply Like
  • Chris Lau
    , contributor
    Comments (3842) | Send Message
    Bearish on (ZNGA). Tried Farmville 2, but 2-3 hours into the game my barn is "full" and needs an upgrade. Game is too quick to ask for payments. This will unnerve users, not to mention limit the viral boost anyone expected from the game.


    5 Jun 2014, 12:11 PM Reply Like
  • godly8854
    , contributor
    Comments (2) | Send Message
    GLUU is gonna dominate the social gaming space..Niccolo has some fanstatic product titles and games in his pipeline.
    5 Jun 2014, 02:37 PM Reply Like
  • Bullmarketcall
    , contributor
    Comments (1940) | Send Message
    Would it be possible to be more specific_ Nothing new since DH14 a/ downturn from 5.5 to 3.6 THAT is BAD NEWS: What products_ Only J bond for 2015. long time. Forgot, something else, bought of Dinner dash... What that buying means_ A total lack of products self made by Glu_ I still have some faith on Glu But there has been a pump / dump until this day. Pumping to 5.5 was that bull not real_
    So what is the real worth of Glu, is it its pipeline.
    Some news in the near term are expected though and belive there will beb good news.
    Products, for 2014, have not been good enough. not met expectations.
    5 Jun 2014, 06:48 PM Reply Like
    , contributor
    Comments (324) | Send Message
    Ford once was $1.15. I bought 30,000 Ford shares at a time when the automotive sector was gloomy. Zynga is restructuring. Its value should rise given its broader base. Like Ford, Zynga needs to expand quality and innovation. Only restructuring can do this. I just bought the dip. No one can guarantee a rise, but given the quality of the incoming management as compared to the outgoing, Zynga could be a $7.00 to $14, and I have seen as high as $30 in the future. All depends on mobile gaming, gambling, and game quality innovation. A risk, but Ford has returned well over 1000 percent. I'm sticking with Zynga. And Zynga should NOT sell to a Chinese company. Why sell the mine? Why not process your own diamonds?
    5 Jun 2014, 12:37 PM Reply Like
  • haleiwahu
    , contributor
    Comments (4000) | Send Message
    I agree with SKVAM
    5 Jun 2014, 01:27 PM Reply Like
  • Bullmarketcall
    , contributor
    Comments (1940) | Send Message
    There re oranges, there are tomatoes.
    Nothing but big difference between those two.
    5 Jun 2014, 06:49 PM Reply Like
  • George Kesarios
    , contributor
    Comments (784) | Send Message
    I told you so :-)))
    5 Jun 2014, 01:40 PM Reply Like
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