Technology StocksZynga, Inc.

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To: Glenn Petersen who wrote (314)4/7/2014 10:24:27 AM
From: The Ox
   of 345
I understand the worries. Don't get me wrong. At the same time, the cash flow KING is generating should allow them time to either build a few new revenue streams or buy them if their production falls short. They came to market at a great time for the company but not for the stock, IMO. It will be interesting to see if they can produce more in the near future or if they see their revenue drop significantly over the next couple of quarters. The cash they built from the IPO will help big time.

Many IPOs can't perform to the standards of the market's expectations. Whether it's a few years or a few quarters is a big question for many newly minted issues. We saw this with ZNGA.

GRPN, to me, is another excellent example. Maybe I'm wrong but I think they're a few quarters away from starting to live up to those expectations. It may be a bit longer than that but I think they've done many of the "right things" to build their franchise. This has not directly translated into earnings power yet and they've been trading long enough for those who "bought the initial hype" to be frustrated.

We'll crystal ball has been wrong many, many times!!

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To: The Ox who wrote (315)4/7/2014 11:25:54 AM
From: The Ox
   of 345
Wedbush analyst Michael Pachter reiterated an Outperform rating and $7 price target on Zynga (NASDAQ: ZNGA) and added the stock to its 'Best Ideas List' saying they expect Zynga to meet or exceed Q1 guidance and reiterate full-year guidance when it reports results on Wednesday, April 23.

Pachter said, "Our Q1 estimates are for bookings of $150 million and EPS of $0.00, vs. consensus of $148 million and $(0.01), and guidance of $138-148 million and $(0.01). We believe management has undertaken an “under-promise and over-deliver” approach to guidance, strengthening our belief that it will avoid a miss. Our FY estimates are for bookings of $820 million and EPS of $0.04, vs. consensus of $788 million and $0.01, and guidance of $760-810 million and $0.01-0.03."

The analyst notes Zynga appears determined to address the “play anywhere” free-to-play market by leading with mobile games and ensuring that its games are available cross-platform. He also said Zynga management is focused on the top 20 mobile markets, and intends to focus its new games on the highest revenue genres in those markets.

They also expect Zynga to profitably grow its business and think that Zynga’s current staffing levels imply that a significant number of new products are on the horizon.

For an analyst ratings summary and ratings history on Zynga click here. For more ratings news on Zynga click here.

Shares of Zynga closed at $4.20 yesterday.

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From: JakeStraw4/8/2014 4:22:34 PM
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Why Zynga looks well positioned

Early in February, Zynga's stock price surged after a UBS analyst increased his rating on the stock, following the company's decision to purchase NaturalMotion.

Moreover, after CEO Don Mattrick announced the launch of pilot programs for Zynga's real-money poker game across various parts of the world by the end of this year, shares received another boost. As Zynga makes investments to grow and sustain its franchises, the stock should see solid growth in the future.

Driven by the company's strategic investments, Words With Friends and its Casino franchise are yielding impressive results. For example, in the previous quarter, bookings for Words With Friends grew 33% sequentially, which was the biggest in the game's five-year history. On the other hand, the Casino franchise achieved sequential booking growth for the first time in the last 18 months, indicating the fact that Zynga is indeed making the right moves.

Zynga has also introduced a new mobile slots game, and the company will continue to push more games on the mobile platform. Management expects 2014 to be a landmark year for its mobile growth, with new additions such as FarmVille, which it plans to introduce in the second quarter. With a rich history of more than 400 million people having played FarmVille on Facebook, Zynga is eager to take this success onto the mobile platform.

Zynga is also very confident about the racing game genre on mobiles. NaturalMotion has pioneered the racing experience on mobile devices with games such as CSR Racing and Clumsy Ninja.

CSR is among the top racing games on mobile in more than 20 countries. On the other hand, Clumsy Ninja achieved 10 million downloads in the first week of its launch and became the number one free game in the Apple App store.

Hence, the acquisition of NaturalMotion will help Zynga accelerate its growth in mobile gaming. Acquiring NaturalMotion will benefit Zynga in three ways. First, it will help it expand its creative pipeline; second, it will boost its growth in mobile, and third, it will bring next-generation technology and tools to Zynga.

Consequently, around 75% of all the games under development at Zynga can also be played on mobile. It anticipates its mobile bookings to surpass its web bookings going forward, and account for more than 50% of its bookings base.

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To: The Ox who wrote (315)4/23/2014 4:26:49 PM
From: Glenn Petersen
1 Recommendation   of 345
I am not inclined to criticize a company for taking advantage of an open window to tap the public markets, even of it means a few bumpy quarters while they get their act in order. If they don't take advantage of the opportunity, they may never get another chance. GRPN timed their IPO perfectly. They needed the cash and the window was open. The cash has given them an opportunity to revamp their business model. Livingsocial was not so lucky. The KING IPO was not a disaster. They raised their cash at a reasonable valuation and now have an opportunity to show the world that they have a Second Act, or not.

IPO window slamming shut on tech and biotech

By Aaron Pressman
The Exchange
April 12, 2014

So much for the busiest week for IPOs since 2007 … because it looks like Thursday’s market swoon has derailed much of the new issues market.

Seven companies were scheduled to go public after the close yesterday but it looks like only three actually made it: Mediterranean restaurant chain Zoe’s Kitchen ( ZOES), energy infrastructure operator Enable Midstream Partners ( ENBL) and livestock drug maker Phibro Animal Health ( PAHC).

That’s not surprising after the tech-heavy Nasdaq Composite Index plunged 3%, its worst single day decline since November 30, 2011. Recent IPOs and other fast-growing, unprofitable companies were among the hardest hit. Network security specialist FireEye ( FEYE) dropped 12%, streaming music service Pandora ( P) fell 10% and cloud HR provider Workday ( WDAY) lost 9%.

So as for the tech and biotech IPO candidates planning to price last night? Crickets. There is no pricing information for HR cloud services provider Paycom Software, early-stage biotechs Scynexis and Aldeyra Therapeutics or real estate investment trust City Office REIT. The web site IPO Boutique reported Scynexis and City Office would try to price next week.

Underwriters did complete one deal postponed from Wednesday, Farmland Partners ( FPI), but at a reduced size and at the low end of its expected price range.

And none of the four deals priced Thursday night were well-known companies. The real IPO test comes next week, when Weibo — the Twitter of China — and Sabre, owner of the Travelocity website, are planning to raise big bucks.

If the market continues to drop, especially for technology and Internet companies, there’s little chance those deals will price. But if things recover quickly, the IPO window could open right back up.

We’ll update you as more information becomes available.

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To: Glenn Petersen who wrote (318)4/23/2014 4:31:41 PM
From: Glenn Petersen
1 Recommendation   of 345
The press release:

Zynga Misses in First Quarter, But Touts New Leadership and Mobile Growth

By Eric Johnson
April 23, 2014, 1:09 PM PDT

Still in the middle of its social to mobile transition, Zynga fell short of the street consensus on earnings per share in Q1, with a loss of seven cents vs. an expected one-cent loss, dragged down by higher than expected restructuring costs.

Analysts initially expected the restructuring costs to hit in the second quarter, but the company pulled them forward, totaling $29 million in the first quarter of 2014. However, the company reported better-than-expected bookings of $161 million, beating analyst expectations of $146.5 million. Total revenue fell 36 percent year-over-year to $168 million.

Zynga shares are trading up 4 percent after hours, at 4.61 per share as of the time of this writing.

The gaming company also announced the completion of a leadership shuffle that began with the appointment of former Xbox executive Don Mattrick as CEO last year. Former CEO Mark Pincus, who had been serving as Chief Product Officer under Mattrick, has stepped down from that role but will remain chairman of Zynga’s board.

Alex Garden, currently the general manager of Xbox Music, Video and Reading at Microsoft, will become the first President of Zynga Studios, a new role reporting to Mattrick, on May 5. Garden will oversee all games developed at Zynga except NaturalMotion’s titles, which will remain under that company’s CEO Torsten Reil.

Reporting to Garden will be another new hire, Chief Visual Officer Henry LaBounta, who started two weeks ago. LaBounta previously worked with Mattrick on the Need for Speed franchise at EA, and has experience in CGI, movies and television by way of a six-year stint at DreamWorks.

In its last new hire, Jennifer Nuckles, Zynga is also getting a Chief Marketing Officer for the first time since the resignation of former CMO Jeff Karp in 2012. Nuckles started last week and will oversee attempts to go beyond Zynga’s current marketing initiatives, banner and interstitial app ads.

Following January’s acquisition of Natural Motion for $527 million, the company’s monthly mobile audience grew 45 percent, but even excluding Natural Motion’s hit games like CSR Racing and Clumsy Ninja, mobile users were up 11 percent quarter over quarter. At GDC last month, Mattrick said the company’s mobile turnaround is halfway there, and it’s likely that transition will be the central focus of the company’s call with investors at 2:00 Pacific Time.

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From: Glenn Petersen4/28/2014 8:45:22 AM
   of 345
Rovio Profit Falls by More Than Half

Maker of Angry Birds Game Trying to Adjust Business Model

By Juhana Rossi and Sven Grundberg
Wall Street Journal
Updated April 28, 2014 7:17 a.m. ET

ESPOO, Finland—The maker of the Angry Birds mobile game, racing to adapt to changing gaming trends and diversify a business built on a wildly popular smartphone app, said profit more than halved in 2013 while revenue was essentially flat at €156 million euros ($216 million).

Finland-based Rovio Entertainment Ltd. poured heavy investment in a new racing game called Angry Birds GO! in 2013, which the company labeled "a foundation-building year."

GO!, however, failed to make a large impact amid stiff competition from a raft of other Nordic gaming entrants—including Supercell Oy, which makes Hay Day and Clash of Clans, Minecraft maker Mojang AB, and King Digital Entertainment PLC, which makes Candy Crush Saga and recently went public.

Until last year, Rovio's flagship Angry Birds games generated revenue through download fees. However, nearly all the top-performing titles in the industry today are so-called free-to-play, or freemium games, meaning they cost nothing to download and revenue is generated through in-game purchases. As a result, Rovio has been adjusting its model and that is a slow process.

"To be honest, the free-to-play transition has taken longer than we anticipated," Rovio Chief Executive Mikael Hed said in an interview. He said the roughly flat revenue curve was largely attributable to the transition.

The company posted a net profit of €26.9 million ($37.2 million), compared with €55.5 million in 2012. Revenue in 2013 was up slightly from €152.2 million in the year prior. Operating profit, meanwhile, fell to €36.5 million from €76.8 million.

Rovio is closely held.

Mobile gaming rivals such as Japan's GungHo Online Entertainment, King and Supercell all saw explosive growth last year. King, for instance, saw a more than tenfold revenue increase in 2013, as sales skyrocketed to $1.88 billion from $164 million in 2012, largely on the back of its "Candy Crush Saga" megahit. Meanwhile, Supercell, with its "Clash of Clans" and "Hay Day" games, saw revenue soaring to $892 million last year, up from $101 million in 2012.

Rovio also makes money through licensing its Angry Birds brand and producing animated film clips. Its workforce grew to more than 800 people in 2013, up from about 500 at the end of 2012.

Corrections & Amplifications
An earlier version of this article misspelled the name of Rovio Chief Executive Mikael Hed as Michael Hed.

Write to Juhana Rossi at and Sven Grundberg at

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From: Suma5/9/2014 3:37:13 PM
   of 345
I have lost more money on this damnable stock.Every day it is down.I am down so much now I cannot afford to let it go and every day it drops more.

Glenn are you still holding or have you given up as I almost have.

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To: Suma who wrote (321)5/14/2014 4:58:47 PM
From: Glenn Petersen
   of 345

I don't currently own ZNGA and I am at a loss as to what to tell you. They need a fresh hit. On the positive side, they are sitting on a fair amount of cash and have done a reasonably good job of managing their contraction.


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From: Glenn Petersen8/7/2014 4:16:10 PM
   of 345
Another disappointing quarter from ZNGA.

The press release:

Zynga Misses on Revenue, Lowers Full-Year Guidance

By Eric Johnson
August 7, 2014, 1:05 PM PDT

Zynga is trying to reinvent itself on mobile — but that reinvention will take some more time, the company said today in its Q2 earnings report.

The San Francisco-based gaming company reported bookings of $175 million in the quarter that ended in June, below analyst expectations of $191 million. It also lowered its full-year guidance by $85 million, and is now forecasting full-year bookings to come in between $695 and $725 million.

For the first time, mobile revenue surpassed the revenue from Web games on Facebook and Monthly active users on mobile were up 34 percent year-over-year, likely connected to the launch of Farmville 2: Country Escape on mobile.

The first mobile iteration in the Farmville series has consistently been a top-20 grossing app on the U.S. iPad store since shortly after launch, according to App Annie. However, it has yet to overtake its main rival, Supercell’s Hay Day, which seems entrenched in the top 10.

Games that had been planned for release in the spring and summer — including retooled mobile-first versions of Zynga Poker and Words With Friends — will be delayed to late 2014 or into 2015. Meanwhile, Zynga also announced new partnerships with the NFL and Warner Bros. to make a football game with officially licensed player likenesses and an endless runner game, in the style of Stampede Run, starring Looney Tunes characters.

Development of the NFL game is being headed in Zynga’s Orlando, Fla., studio by Mike Taramykin, an eight-year EA Sports veteran who worked bringing on the lucrative Madden franchise to Facebook. At EA, Taramykin also oversaw the Tiger Woods PGA Tour franchise, which dropped Woods as its mascot in late 2013; perhaps it’s no surprise, then, that Zynga has also inked a multiyear exclusivity deal with Woods to make him the face of a new golf game, also in development in Orlando.

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From: Glenn Petersen11/7/2014 11:08:06 AM
   of 345
Zynga sees net loss widen but reaffirms 2014 outlook

Mike Snider
7:38 p.m. EST November 6, 2014

Social games company Zynga said on Thursday that its third-quarter net loss widened to $57.1 million in the third quarter as gaming revenue declined.

Shares of Zynga rose more than 6% in after-hours trading Thursday (to $2.50) after the company reaffirmed its earnings outlook for the year.

Adjusted loss per share amounted to 1 cent, matching analysts' estimates.

Its net loss totaled $57.1 million, compared to $68,000 of loss a year ago. The company's revenue fell 12 % to $176.6 million, above forecasts expected by analysts of $171.7 million in the third quarter.

Zynga expects fourth-quarter revenue of $170 million-to-$200 million, in line with expectations of $199 million, and reiterated its 2014 forecast of $695 million-to-$725 million.

"Our teams have been working hard over the last year to reshape our business and we are seeing that work show up in two important areas – our franchise bookings and mobile bookings growth," said CEO Don Mattrick in a statement accompanying the earnings release. "Last quarter, our core franchises – Casino, Words With Friends and FarmVille – grew 30% year over year in terms of bookings, and we achieved meaningful growth in mobile with a 111% increase in mobile bookings annually."

The game maker has struggled to find new hits to match the success of games such as FarmVille, Zynga Poker and Words With Friends in recent years. Zynga has the potential to increase revenue, says Piper Jaffray analyst Michael Olson, who lowered its estimated 2015 growth from 25% to 17% in a note released earlier this week.

Zynga's NFL Showdown and revamped Zynga Poker "have not fared well thus far," he said. But a new version of Words With Friends launched last month and on the way is a Tiger Woods golf game, a Looney Tunes "runner" title and new games developed with acquired developer NaturalMotion (CSR Racing, Clumsy Ninja). "We expect most on the Street will take a wait-and-see approach to the ability of these games to reach top 20 rankings," he said.

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