When it comes to profits, a big chunk of what is generated in Silicon Valley stays in Silicon...

|By:, SA News Editor

When it comes to profits, a big chunk of what is generated in Silicon Valley stays in Silicon Valley. Besides its tepid Q4 results, Zynga's (ZNGA) $600M stock compensation expense in 2011 overwhelmed profits, and its $425M forecast stock comp for 2012 will again take operating profit negative. ZNGA, LNKD and GRPN use non-GAAP metrics that gloss over stock comp.