For those that follow the business side of social gaming, Zynga stock took a pounding in after hours trading between last night and this morning.  Down 40%.  Currently at $3.05.  Compare that to the 52 week high of $15.91 set in March.

thanks for the tip..

Was to be expected. It's much like

Most 'software houses' that are not selling actual physical products might boost their worth on paper when they need money, but in fact, they're not really worth a dime...

Originally posted by Reizla

Most 'software houses' that are not selling actual physical products might boost their worth on paper when they need money, but in fact, they're not really worth a dime...

Considering that the most software business are moving to the service model, you could not be more wrong. 

With Zynga and Facebook, you have bloated evalutions. Just like with the Internet Bubble at the turn of the millenium. Their evalution is based on the estimated potential of that business rather than concerete earnings.

Originally posted by thexrated

Originally posted by Reizla

Most 'software houses' that are not selling actual physical products might boost their worth on paper when they need money, but in fact, they're not really worth a dime...

 

Considering that the most software business are moving to the service model, you could not be more wrong. 

With Zynga and Facebook, you have bloated evalutions. Just like with the Internet Bubble at the turn of the millenium. Their evalution is based on the estimated potential of that business rather than concerete earnings.

Exactly what I was going to say.   The same thing happened with Television industry back in the 50s/60s. 

Originally posted by XAPGames

For those that follow the business side of social gaming, Zynga stock took a pounding in after hours trading between last night and this morning.  Down 40%.  Currently at $3.05.  Compare that to the 52 week high of $15.91 set in March.

 Great news as far as I'm concerned, sleezy company.

I feel for the little guys that got burned, but not for the ones that should have known better.

Another Zynga exec jumped ship.

http://allthingsd.com/20120919/zyngas-chief-security-officer-nils-puhlmann-stepping-down/

I wrote a sell piece on them months ago, got called insane by hundreds of people. LOL

Horrible company. The scammy company acquisitions (inflates their sheets, like what Enron and crew did) and theft of IP was just the tip of the iceberg. Stock option clawback provision and generally bad management means when that company sinks it's the Hindenberg. They also have no profit, or as far as I could tell, even revenue from their core business.

Long overdue.