Maybe we shall we note downturn now for ZNGA?
Overall, stock market is seemingly dropping slowly, as it becomes apparent that petrol prices did not translate into more retail commerce buy volume, and that healthcare plan costs are now mandatory for wage earners (and forcing 20-25% of spending into health care costs of all kinds). <---even cash co-pays went higher for consumers.
We could keep-on-going with the toping trend in the market, and enter a deeper recession, beginning in next two quarters, as folks hoard cash and pay down their credit.
Conversely, this could mean ZNGA will be in a market sector (home and mobile entertainment) that benefits from 'stay-cation' economics. Options closure didn't seem that impressive, one way or the other. For example, were the options placed a cross-sector balancing bet? That is the puzzle we never know, in the mix?
Facebook: within recent pass its been somewhat of negative captive relationship, for VG companies. Ten Cent could be set up to eat Face book lunch. Who will Asians prefer, or be 'pushed' to use, by their governments (that control access to internet); as they receive infrastructure capital investment from new Chinese investments? I think ZNGA was better off going with .10 as its future.
USA power players in DC are off playing games elsewhere . . . the Chinese are focusing on buying up USA domestic and foreign markets, while technologically challenging their competitors in them? With our added lack of domestic infrastructure investment and attendant needed jobs and tax revenues thereof, what could possibly go wrong?
My guess . . . short-term stock price folds somewhat, and towards fall and holiday season . . . ZNGA blasts pass the 3.50 mark.
