Zynga Inc (ZNGA)

[Tom4investor2011]

Too much! Good news...then Bad news....then FB....then.....lolzzzzzzlolzzzzz!!!

Then........
• Investors are also miffed that Zynga’s stock has halved over the past two months, not least due to its over-dependence on Facebook (NASDAQ:FB), which is itself under a cloud after its IPO became controversial due to its lowered revenue guidance.
In damage control, Zynga is likely to place more advertising in the game in collaboration with Dreamworks Animation (NASDAQ:DWA) to boost revenues.
In defense of the game, Zynga claims it is an excellent asset that still attracts millions of players. “We think of it as a game that’s an evergreen franchise,” said John Schappert, Zynga’s chief operating officer. “It’s a game that will live on for years.”
• In other moves to bolster the game’s fortunes, Zynga added social networking features such as messaging between players and plans to add more languages to expand its global reach.
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then.......baZynga's ANGRY BIRDS!?
• Zynga (ZNGA) is a game developer known primarily for creating popular casual games designed for social media platforms such as Facebook (FB), as well as standalone games for mobile devices such as "Angry Birds". The company's market capitalization currently sits at a cool $5.20B as of last close. I believe that this company is significantly overvalued at current prices and it should be avoided.
Why? Well, first of all it's helpful to understand just what Zynga does. The games they create are not particularly difficult to write compared to the high budget, triple-A games that come from the larger publishers such as EA Games (EA) and Activision-Blizzard (ATVI). In fact, their games are sometimes even shameless clones of games that have already been available.
Don't believe me? Zynga's recent release, Dream Heights, is actually a clone of a game called "Tiny Tower" (that was developed by a team of three developers, no less). Their other games? "Words With Friends" is just Scrabble. And the rest of the games they put out, like "FarmVille" and "CafeWorld", are incredibly simplistic and have the mass appeal that they do because they're fairly addictive and easy to play.