Zynga Inc (ZNGA)

[janicen_98]

First Mover advantage Mutli-faceted revenue streams



1. This company is a gift selling at these levels.

2. The online gambling machine has just started it's wheels and when the ship is fully operational--those with the keen insight and first mover advantage will be massively rewarded. Remember not many years ago Powerball was a game in a few states with pots that started out at 5mm. Now its in almost every state with hundreds of millions of players each week and pots that start at I believe 20-40mm. The same thing will happen with online gaming. It may start with 2-3 states but once states get a drift of tax revenues they can pull in--they will ALL(maybe not Alaska:)get in on it. Zynga is building a first mover position and its rolling. I would dare to say that Zynga will have multiple partnerships in place over the next 12 months--why? Zynga brings it all to the casinos. They have the technology and the gamblers--multi millions of them--they are number 1. Zynga is a gorilla in the making--I have no doubt. Some people have asked why would casinos share---why because theyre not idiots!!It's really not about sharing--it will be ab out survival--online gambling will over take walk in gambling so quickly -that anyone who is not in on it will be left behind. I like that Zynga has been going after patents--and they should continue to it--it should be one of their top priorities to get as many patents related to this segment as possible. While they may not get all of the business---they stand to make hundreds of millions of $ in licensee revenues as well for those patents. This is going to be so massive I dont think anyone has an idea yet. It is possible when all is said and done that Zyngha could be the largest casino based mechanism in the world.



I don't want to short change and not talk about online gaming. This is where Zynga became public in the first place. I think they have made mistakes here--but still lets not forget just the massive massive scale and potential in this segment as well. Gamers spend a Lot of money gaming:) Its just not hardcore gamers its most gamers. They buy Xbox Wii PS3 PC Gamers software video games CD's etc.. 100B $ is spent on gaming each year. Zynga needs to get a piece of the pie here. While Pincus was right about saying well there is million sof gaming counsels in users hands right this second:) Hes right and where has Zynga suffered???? They have not understood how to monetize their incredible position. If someone likes playing a game that is free---they would most likely also PAY 3-10$ a year to play it!!!! Or perhaps .50 a day to try it--it cannot be totally free and it shouldn't be. Content that comes from Zynga at some point should be paid for---not a lot---no asking 50 for wii baseball--but nickels and dimes--nickel and diming 300-400 million users will add up. It should and its fair. Someone who comes home and uses Zynga chess for example will they keep their social game if they have to pay 8$ a year for it.. Answer= YES. Then an on. And Zynga will still have their massive advertising platform


Both units can be spectacularly big--and its not a pipe dram--with proper execution this could be on of the biggest companies in the world.