I've been following Zynga (NASDAQ:ZNGA) for a while now. I don't own any but like thier potential upside. Thier market cap. of $3.74 billion was always appeasing to me and I can see a bright future with access to over 230 million users. After todays earnings report and 30-40% drop per share they look even more appealing.
There's far too many good things that happened during this call to think everything is over for Zynga. This is where I considered a large purchase for term growth. One of the easiest ways to earn money during an earnings call is to play peoples emotions. When the storm settles the price will level out and most likely will remain there until they can announce their next upcoming products, which if you follow any news in the past on Zynga you know they have big things in the works. At a price of around $3.20 a share you have the ability to pick up a high volume of shares and make a pretty decent profit when the panic stops and people realize they can get it for 'cheap'. It will go back above $4 shortly, the more I write the more I am considering of staying up late and picking some up in the pre-market. With a large cash balance even after some large purchases this quarter they stand to be aquired for a very high price, or continue to utilize the high user base and cash to aquire the next generation of mobile gaming. Facebook (NASDAQ:FB) has their earnings call tomorrow and it could have an effect of Zynga's share price again. If it does, play off of people's emotions, when everyone else wants to get out, find a marginal price and buy while you can. Emotions change very quickly and theirs a reason they bought into a company to begin with. They will be back to drive your price higher and all the attention will bring even more money to the table.
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in ZNGA over the next 72 hours.