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Zynga (ZNGA +9.1%) is adding to its post-earnings gains, maybe with the help of short-covering....

Zynga (ZNGA +9.1%) is adding to its post-earnings gains, maybe with the help of short-covering. In addition to the Q4 beat (fueled by cost cuts), Mark Pincus' earnings call remarks about focusing on profitability by steering resources towards online gambling, existing hits such as FarmVille 2, and a handful of new "midcore" titles seem to be going over well. Jefferies and Evercore remain cautious, noting visibility is low (no 2013 top-line guidance) and bookings are expected to fall again in Q1. Facebook (FB +1.5%) is up a bit.
Comments (1)
  • ATX
    , contributor
    Comments (71) | Send Message
     
    Saying "chief this chief that left the company to join another company" is just a nice way of saying "you are fired, we don't need to pay $1000/hr when we can pay $20/hr for the same amount of work". If they continue the cost cutting trend by firing high ranking positions, they will beat Q1 estimate just like they did with Q4, if they didn't touch their 1.65b cash reserve in Q4, their continue cost cutting measures will lead them to beating their Q1 2013 estimate again like they did with Q4 2012. Don't try to short this beaten bulldog at these price level, it's on the rise with a buy rating by BofA, you have been warned.
    7 Feb 2013, 03:01 AM Reply Like
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