Well, you guys convinced me to buy a 20k order... just got in at 2.82... I still feel really terrible about the state of the company and what not... but for now I'm back in..
They need to do a lot to gain my trust, to go back up to a 100k position..
This is the bad stuff I see:
They are seemingly at war with Facebook (FB) since many actions as of late (notably Facebook launching its own real money gaming title) seem to suggest the social networking giant trying to separate itself from Zynga.
Their *Ville* games are dying, they're not monetizing very well at all.
The market seems to be moving towards mid-core titles on mobile yet Zynga is far behind on that front.
Zynga has 3000 employees and they launch 3 - 4 games a year, of which none are really monetizing well at all.
It costs $7 - $10 million to create and launch a game for Zynga, this is hardly what I'd consider efficient at all. Smaller studios are able to create better quality titles at 1/10th the cost or less!
House of cards? - The company is supported right now from the revenue of a handful of old earners like Mafia Wars, Texas Hold'em etc. How long will they last?
Zynga faces a very real threat of not being number 1 anymore. Their MAU is rising yet their DAU is falling. They're clearly losing users.
They continue to hire highly paid execs that under perform.
Mark Pincus holds over 50% control, but most of his control comes from the class C shares he holds which has 70 to 1 voting power. So monetarily those shares aren't worth a whole lot, but he has a ton of voting power. And he would never sell those shares, who would?
They need to work on fixing all of the above... stock price will go up.. otherwise, we get shorted and messed with maybe down to 2.6 area... I'd HATE to be another bear sterns situation (below $2 in zynga's case).
