During a lively Q2 earnings call (live blog), Zynga (ZNGA) partly attributed its poor...

During a lively Q2 earnings call (live blog), Zynga (ZNGA) partly attributed its poor results/guidance to changes made to Facebook's app discovery platform that favor newer games. Those changes led to a 34% Y/Y drop in users for live games. Zynga was also quick to blame $210M acquisition Draw Something, and is hoping online gambling (international markets launch in 1H13) will give it a lift. CEO Mark Pincus is drawing heat for selling $200M in stock in March. ZNGA -37.8%. FB -8%.
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Comments (11)
  • Chris Lau
    , contributor
    Comments (4157) | Send Message
    Will the American government be supportive for gambling online. Unlikely. Think year 2000. Plus, Americans on food stamps can waste time on games but to lose real money makes no sense.


    Znga draw something fiasco also looks similar to THQI's blunder on spending so much for a title that lost hundreds of millions.
    25 Jul 2012, 06:46 PM Reply Like
  • GnomishMath
    , contributor
    Comments (2) | Send Message
    Americans on food stamps, and those with the most to loose are the primary target of gambling industries. ie. the Lotto. I believe online gambling was objected in order to consolidate the industry.
    26 Jul 2012, 02:36 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
    Price target: $2.50, as I pegged a few days ago, especially if institutions that recently bought in sell their losing stake. ZNGA likely won't go above $5 again any time soon.
    25 Jul 2012, 06:51 PM Reply Like
  • losbronces
    , contributor
    Comments (1007) | Send Message
    Seems like Pincus sold at the right time.
    25 Jul 2012, 06:52 PM Reply Like
  • chopchop0
    , contributor
    Comments (5211) | Send Message
    Shorting social media/commerce IPOs is like shooting fish in a barrel.
    25 Jul 2012, 06:54 PM Reply Like
  • labas112
    , contributor
    Comments (516) | Send Message
    SOCL if you want to know.
    25 Jul 2012, 07:30 PM Reply Like
  • tonyturbo42
    , contributor
    Comments (2) | Send Message
    Not believing Zynga is going to cash in on real money gambling is just plain naive and short sighted. 2 states have already passed the laws to make it legal and the others are not far behind. The people who play farmville and Zynga poker are not the people who are going to be playing their real money poker games. They are betting on capturing a share of the millions of players pushed out when Full tilt, etc lost their US license.
    25 Jul 2012, 08:44 PM Reply Like
  • rescano
    , contributor
    Comment (1) | Send Message
    I think we should question those CEOs and other insiders who sell off their holding with the help of the underwriters so close to the IPO, leaving us the small investors loosing our shirts. There should be an investigation on some of these rigged actions. Pinkus sells off his holdings, becoming a millionare while receiving a hefty salary. This is not fare, and neither is illegal.
    25 Jul 2012, 08:46 PM Reply Like
  • berniespear
    , contributor
    Comments (251) | Send Message
    So funny. F Zynga


    Everyone plays mobile games so someone is making money, gonna buy some GLUU tomorrow on its dips!
    25 Jul 2012, 11:08 PM Reply Like
  • chopchop0
    , contributor
    Comments (5211) | Send Message
    Until people get sick of IAP (In-app purchasing) that nickels and dimes you perpetually. I'd be wary of both stocks.
    25 Jul 2012, 11:11 PM Reply Like
  • Xavier M
    , contributor
    Comments (50) | Send Message
    Facebook will tarde under 10 bucks in no time.
    26 Jul 2012, 04:11 AM Reply Like
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