Seeking Alpha

Jefferies tries to throw some cold water on the euphoric market response to Zynga's (ZNGA +15%)...

Jefferies tries to throw some cold water on the euphoric market response to Zynga's (ZNGA +15%) U.K. real-money gambling launch. The firm's arguments: Only 6%-9% of Zynga's revenue comes from the U.K., 81% of Zynga's revenue is still tied to Facebook and 18% to mobile, there's some cannibalization risk for Zynga Poker (ed: Zynga is probably willing to accept this), revenue is shared with Bwin.party, and the timing of a U.S. launch remains a question mark. Needham is more optimistic, arguing the launches and the popularity of What's the Phrase could provide a Q2 lift.
Comments (2)
  • Jeffries is worthless.
    Downgraded GLUU on rise, lowered on fall and it continued up.always way late and not accurate. ZNGA will rock
    .
    3 Apr 2013, 09:13 PM Reply Like
  • Long ZNGA-buy dips lightly-hold what i've got-don't sell for small profit now.2500-5000 shares would be good......Rom
    4 Apr 2013, 12:02 AM Reply Like
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