POP! Zynga stock goes boom

[TheGuy(wantstobe)]

Source [http://blogs.wsj.com/marketbeat/2012/07/25/zynga-posts-surprise-loss-shares-down-more-than-30/?mod=yahoo_hs]

Zynga earnings just hit the Tape, they were bad, the outlook was worse, and the stock?s getting clobbered.

Shares were down 8% in late trading before the report even hit the Tape; they?re now down 41% at $2.99.

Facebook shares are down 6.6% as well, as investors worry about the read-through (company reports earnings tomorrow).

Zynga slashed its 2012 outlook. The company now projects adjusted EPS for the year of 4 cents to 9 cents, which is well, well below current Street consensus of 26 cents, according to FactSet.

The earnings were a salve by comparison. For the second-quarter, the company reported a loss of 3 cents a share, or a profit of 1 cents a share on an ?adjusted? basis, on revenue of $332.5 million.

That?s off Street consensus, which was for earnings of 5 cents a share on revenue of $344 million.

Investors who put into this must be kicking themselves right now.

 

[Vuliev]

Muahahahahaha /schadenfreude


Seriously, I view Zynga as a dot-com-era corporation, and they should absolutely go pop.

 

[TheCommanders]

Sorry, is this supposed to be a surprise? If so the only surprise is they managed to hang on this long with no discernible purpose or use.

 

[Lunar Templar]

this is only 'bad' because good people could lose they're jobs

other wise, nothing a value lost here

 

[McMarbles]

Wait a minute... you mean... Bubbles can BURST?

 

[geK0]

Seems pretty fitting for a company who's business model consisted only of delivering minimal value trying to maximize revenue by hoping customers would pay them money for nothing. Why do people consider EA worse than Zynga again? At least EA puts some effort (and a lot of money) into their product : \

 

[scorptatious]

Forgive me for sounding ignorant, but who is Zynga? I'd look it up myself, but I'd rather spark up some discussion about this.

 

[Starik20X6]

Forgive me for sounding ignorant, but who is Zynga? I'd look it up myself, but I'd rather spark up some discussion about this.

Makers of countless Facebook games, probably mostly known for Farmville and its bazillion spinoffs. Many would say they're pretty dodgy due to the deliberately addictive nature of their games.

 

[McMullen]

Forgive me for sounding ignorant, but who is Zynga? I'd look it up myself, but I'd rather spark up some discussion about this.

A company that first started becoming really recognizable because of Farmville just a few years ago. They use cheap Skinner-Box psychology to make their games addictive instead of engaging, rip off the ideas of other developers so often that they have a budget set aside for lawsuits because of it, are on record as saying this is their actual preferred business model (that is, ripping people off rather than innovating) and their value exceeded EA in just a couple years.

Most of us who were adults in 2007 recognized their rapid rise for the bubble it was, and have been waiting for it to burst, and it has.

 

[Lionsfan]

Guess that isn't too surprising, I haven't gotten a Farmville request in months

Naw but seriously, these guys should have sold their company just after they hit it big, money trains don't roll on forever

 

[scorptatious]

Forgive me for sounding ignorant, but who is Zynga? I'd look it up myself, but I'd rather spark up some discussion about this.

Makers of countless Facebook games, probably mostly known for Farmville and its bazillion spinoffs. Many would say they're pretty dodgy due to the deliberately addictive nature of their games.

Forgive me for sounding ignorant, but who is Zynga? I'd look it up myself, but I'd rather spark up some discussion about this.

A company that first started becoming really recognizable because of Farmville just a few years ago. They use cheap Skinner-Box psychology to make their games addictive instead of engaging, rip off the ideas of other developers so often that they have a budget set aside for lawsuits because of it, are on record as saying this is their actual preferred business model (that is, ripping people off rather than innovating) and their value exceeded EA in just a couple years.

Most of us who were adults in 2007 recognized their rapid rise for the bubble it was, and have been waiting for it to burst, and it has.

Oh yeah, Farmville. I've heard about the game but I've never played it.

So by skinner box psychology, what do you mean? I remember an episode of Extra Credits discussing that issue, but I don't exactly remember what it is, or how it applies to Farmville.

 

[RatRace123]

Guess they should've sold more of that FarmVille icecream.

Seriously, it's terrible that more hardworking people may lose their jobs.
Losing Zynga, the company, though, not a real tragedy there.

 

[lacktheknack]

I'm not one to rejoice when stocks plummet, but Zynga's CEO rubbed me the wrong way so hard that I may make an exception.

 

[ZZoMBiE13]

Forgive me for sounding ignorant, but who is Zynga? I'd look it up myself, but I'd rather spark up some discussion about this.

Makers of countless Facebook games, probably mostly known for Farmville and its bazillion spinoffs. Many would say they're pretty dodgy due to the deliberately addictive nature of their games.

Forgive me for sounding ignorant, but who is Zynga? I'd look it up myself, but I'd rather spark up some discussion about this.

A company that first started becoming really recognizable because of Farmville just a few years ago. They use cheap Skinner-Box psychology to make their games addictive instead of engaging, rip off the ideas of other developers so often that they have a budget set aside for lawsuits because of it, are on record as saying this is their actual preferred business model (that is, ripping people off rather than innovating) and their value exceeded EA in just a couple years.

Most of us who were adults in 2007 recognized their rapid rise for the bubble it was, and have been waiting for it to burst, and it has.

Oh yeah, Farmville. I've heard about the game but I've never played it.

So by skinner box psychology, what do you mean? I remember an episode of Extra Credits discussing that issue, but I don't exactly remember what it is, or how it applies to Farmville.

Here is the Extra Credits episode. It explains it better than I ever could.
http://penny-arcade.com/patv/episode/the-skinner-box

 

[pilouuuu]

Well, if they spent their success improving their games then they could be even more successful and we could have real games in Facebook, not that social-free-butyouhavetopayforusefulstuff crap.

Let's hope it teaches developers that if they don't make GOOD games then they'll fail eventually.

 

[scorptatious]

Forgive me for sounding ignorant, but who is Zynga? I'd look it up myself, but I'd rather spark up some discussion about this.

Makers of countless Facebook games, probably mostly known for Farmville and its bazillion spinoffs. Many would say they're pretty dodgy due to the deliberately addictive nature of their games.

Forgive me for sounding ignorant, but who is Zynga? I'd look it up myself, but I'd rather spark up some discussion about this.

A company that first started becoming really recognizable because of Farmville just a few years ago. They use cheap Skinner-Box psychology to make their games addictive instead of engaging, rip off the ideas of other developers so often that they have a budget set aside for lawsuits because of it, are on record as saying this is their actual preferred business model (that is, ripping people off rather than innovating) and their value exceeded EA in just a couple years.

Most of us who were adults in 2007 recognized their rapid rise for the bubble it was, and have been waiting for it to burst, and it has.

Oh yeah, Farmville. I've heard about the game but I've never played it.

So by skinner box psychology, what do you mean? I remember an episode of Extra Credits discussing that issue, but I don't exactly remember what it is, or how it applies to Farmville.

Here is the Extra Credits episode. It explains it better than I ever could.
http://penny-arcade.com/patv/episode/the-skinner-box

Thanks!

Yeah, I think I have a clearer idea as to why Zynga's stock fell out the bottom.

At first, when I heard about the skinner box technique itself, I sort of look back at games like say, Animal Crossing. From what I remember, that game kinda did make you do repetitive actions in order to gain rewards.

Thinking about it further though, the reason why I spent so much time playing that game was because I enjoyed the world I was in. Not because I wanted a rare piece of furniture or the satisfaction of paying off my house debt. (I never actually did)

 

[James Joseph Emerald]

Hmm, I wonder if this means the casual market is finally losing its grip on the gaming industry and mainstream developers can finally get back to making interesting games instead of pushing for "mass market appeal" via "streamlining" anything that requires higher thought.

Probably not...