My thoughts are based purely on speculation on Zynga, (NASDAQ:ZNGA), and I have not looked over the numbers meticulously, however if Zynga was to establish some independence from the social networking giant that is Facebook I believe that there is some true value to the stock even at current price levels.
For instance, the company had reportedly been ramping up the structure, size and capability of its own cloud. This is important for two reasons. In quantitative terms this could help explain the $400 some odd million loss that the company reported in their previous earnings report. Again, I have not dug the numbers as deeply as I should have and I could be off on these thoughts, but if someone could please correct me if im wrong, I don't believe that the cost of building a cloud that is the size of their current cloud is a cheap endeavor.
Second reason is that in a broader, speculative view, the cloud could also be seen as a tremendous asset with a few different values. It's first value could in their attempt to become a publisher of games, much like their competitor $EA. This cloud could be a creative universe where unpublished game creators can place their games to be purchased and played by other gamers. Similar to a youtube for video game creators. Now the cloud could also be used to team up with a different publishing companies who could make this cloud very Netflix-esque. A publishing company would sign the rights of the games they want to let Zynga place on the cloud, for a price of course. In turn Zynga charges gamers the ability to access their cloud of games, and play on demand and as they wish. An idea similar to this is more common currently amongst Sony and Microsoft, in that their respective gaming consoles each have their own online features that allow you to buy and download certain games you want to save to your hard drive. The cloud beats this strategy in the sense that you would not need to save the game to anything or spend $30-50 on every game you buy online. Also, and I may be speaking without full knowledge of the feasability of this, but with the cloud it may be possible to not have to wait to download the full game, the game will in a sense "stream" and load as you play. Again all of this is very hypothetical and I'm not sure if even feasible, and yes there is the matter of what is the profit margin for Zynga in all this? what price would they have to pass on to consumers for it be profitable? etc.
Just some ideas on the future possibilities of a company.
Disclosure: I am long ZNGA.