Wednesday, August 7, 2013
Knowing When To Hold'Em At Zynga
After another disappointing quarter, investors are dumping Zynga (ZNGA) for all the wrong reasons. The news that the company was not pursuing a gaming license in the U.S. for real-money gaming (RMG) was over focused on by the media. The stock dropped 15% after the news instead of focusing on the potential in the company to re-develop the social gaming dominance that is within reach.
The company is a leading provider of social games recently passed by King.com as the leading social gamer on Facebook (FB). While disappointing news, the growth in all of the mobile and social platforms should give Zynga investors hope that the future is stronger than expected even without the current potential of RMG.
Disclosure: Long ZNGA and AAPL. Please review the disclaimer page for more details.