Thursday, October 11, 2012

One Billion Zynga Reasons To Continue Shorting Facebook

A couple of news items were released last Thursday that highlighted the short thesis in Facebook (FB). First, the company released news regarding hitting 1B monthly active users (MAU). Though initially sounding bullish, the number highlights the slowing growth trajectory. Second, Zynga (ZNGA) warned of reduced growth going forward, suggesting a considerable reduction in Facebook-related revenue and usage.

Also last week, CEO Mark Zuckerburg made the media circles with an appearance with Matt Lauer on NBC and a Businessweek interview. The interesting take away from both interviews was the focus on MAU. For some reason, these media outlets didn't press the issue on the reduction in usage reported by comScore or the lack of focus on daily active users (DAU).

Read the full article at Seeking Alpha.


Disclosure: Short FB. Please review the disclaimer page for more details. 




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