Seeking Alpha

Zynga (ZNGA): Q2 EPS of $0.01 misses by $0.05. Revenue of $332.5M (+19.1% Y/Y) misses by $11.6M....

Zynga (ZNGA): Q2 EPS of $0.01 misses by $0.05. Revenue of $332.5M (+19.1% Y/Y) misses by $11.6M. Expects 2012 bookings of $1.15B-$1.225B, below prior guidance of $1.425B-$1.5B. Expects 2012 EPS of $0.04-$0.09, below $0.27 consensus. Shares -35% AH. (PR)
Comments (22)
  • This was not unexpected. Pincus' recent interviews gave this possibility away. DeltaN paying off to the downside.
    25 Jul 2012, 04:38 PM Reply Like
  • A little insight of long-term target for FB imo
    25 Jul 2012, 04:39 PM Reply Like
  • I've called (FB) a sell since Feb/2012, but started to get speculative on (ZNGA) after it head below 5. I was wrong.

     

    When FB reports tomorrow night it's going to be very messy. The only way shares will be green is if earnings were "less bad." Great for the short-term, but the long-term is negative for the company. See Google+.

     

    I grew 300% (to 350) on Google+ followers...in the last MONTH:
    http://bit.ly/Q5wi4K

     

    On facebook, my new "friends" adds is 1 or 2.
    25 Jul 2012, 04:46 PM Reply Like
  • exactly me -- have made $ betting against fb but thought znga was a good speculative play to the upside. Woops. Only a pittance. Hoping FB gets murdered tomorrow along with amzn -- the most overvalued overhyped stock since the dotcom bubble. Amzn will probably miss expectations, lose money, guide lower and rise 15%.
    25 Jul 2012, 09:30 PM Reply Like
  • Wow. Now that's having your head handed to you if you are a holder of this stock.
    25 Jul 2012, 04:46 PM Reply Like
  • But look at the earnings, EPS for 2012 ~ 5 cents. FWD P/E is still ~ 60. This doesn't look cheap. Do they have any growth at all? Costs are sky high and the insiders will need to sell. ZNGA (and I have no position and no plans to trade it) should be worth something like $0.50.
    25 Jul 2012, 05:42 PM Reply Like
  • If you buy a company whose business model involves selling people digital farm animals online, you deserve to lose 40% after-hours.
    25 Jul 2012, 05:18 PM Reply Like
  • Perhaps the money goes into feeding the animals? The price of corn has gone through the roof.
    25 Jul 2012, 05:48 PM Reply Like
  • Well, it does cost them almost zero to make those animals. I read some stories where they make a couple hundred thousand dollars off of one user selling them bs like a gold plated machine gun for mafia wars or similar seemingly pointless clicking games. Personally, I prefer Civilization but I'm an old guy.
    25 Jul 2012, 08:10 PM Reply Like
  • No, you deserve to lose 100%. But every journey begins with a single step.
    25 Jul 2012, 09:35 PM Reply Like
  • I have always watched ZNGA stock, but I would never buy it. Only stock I have that is close to ZNGA is GLUU, but GLUU has a very different business model. The bad news from ZNGA actually had a huge negitive impact on GLUU after hours for a short period of time.
    25 Jul 2012, 05:23 PM Reply Like
  • Hold on! Here it is: I WAS WRONG!!!
    25 Jul 2012, 06:04 PM Reply Like
  • I said many times here in seeking alpha: Do not trust in Zynga, so here is the result.
    I got tired of noticing, no trust, no trust, no trust in Zynga. Given the numbers of today ...
    25 Jul 2012, 06:30 PM Reply Like
  • OK, if ZNGA is now at $3 and has like $1.2 in assets that would make $1.8. Given that they will earn like 6 cents/share the P/E is like 30. If they grow 20% (IF) their PEG is still like 1.5. That is still not cheap.
    25 Jul 2012, 06:47 PM Reply Like
  • Yes, they are still priced for spectacular growth but given the huge number of games that don't involve constantly paying money for something available as apps, I don't think that's going to happen. I'm too cowardly to short it though. Tried that during the internet boom and lost my ass.
    25 Jul 2012, 08:13 PM Reply Like
  • You will never see those $1.20 in assets. They will be used to pay salaries during the money-losing times to come, along with various other wasteful and hopeless activities. The only way you'll ever see a distribution from this stock is if they can find someone dumb enough to buy the whole company, and there's no way that deal gets done at $3 a share.
    25 Jul 2012, 09:37 PM Reply Like
  • $95 million of stock option expense in one quarter ... 28% of revenue. Crazy.
    25 Jul 2012, 07:18 PM Reply Like
  • What's about trust? We are all manipulated. Also stocks ...... specially in this one ... 3 USD .. crazy ...
    25 Jul 2012, 08:44 PM Reply Like
  • who cares it`s not a long term hold even the employees know that ...made me 20% return in the last week :)
    25 Jul 2012, 09:15 PM Reply Like
  • Perhaps this illustrates the danger of investing in a company which is massively dependent on another company for its revenues (in this case FB). You have to slap a massive discount on the multiple for that.
    26 Jul 2012, 06:39 AM Reply Like
  • Statements made by Wall Street analysts after the Zynga earnings release conjured up memories of the time before the tech bubble burst, a time when analysts were stock price cheerleaders rather than being fiduciary protectors of their clients money.

     

    What do the Zynga earnings portend for todays Facebook earnings?

     

    Read here:"Wall Street, Zynga, Facebook and 2000 tech bubble redux?": http://bit.ly/QJSzdd
    26 Jul 2012, 09:03 AM Reply Like
  • I've been in the market all my adult life and never experienced so much minipulation. I'm hung up on this word " earning estimates". Why does this word have so much influence, has never been right!

     

    This stock has been slamed ruthlessly. I suspect action in the affirmative.

     

    Investors are looking no farther than their nose. I see lots of potential with online poker. The greedy casinos want this action.
    27 Jul 2012, 02:38 PM Reply Like
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