Time to bail on Zynga

[Gaddabout]

I mean, if you're still crazy enough to own it.

Just laid off 100 people. Shutting down the Boston offices.

http://techcrunch.com/2012/10/23/zynga-layoffs/

 

[Mulli]

Does this have anything to do with their involvement in mafia wars?

 

[Gaddabout]

Does this have anything to do with their involvement in mafia wars?

Probably has more to do with making awful, annoying games, but sure ...

 

[Russ Smith]

I mean, if you're still crazy enough to own it.

Just laid off 100 people. Shutting down the Boston offices.

http://techcrunch.com/2012/10/23/zynga-layoffs/

I'm one of the idiots who bought it assuming some bigger game company would buy Zynga.

The stock is actually up slightly today because of the layoffs. They announce earnings tonight, not going to be good. Facebook announced yesterday and said the revenues from Zynga are down 20%.

Zynga is allegedly getting into online gaming and I think that's really the only chance they have to salvage themselves.

Kicking myself, I had a sell order in at 3.30, they hit 3.27 in August and I didn't do anything.

 

[Gaddabout]

I thought they were a great buy a year ago. It seemed the only way to make money on Facebook, and they had that whole market cornered. They found a way to turn a money printer into a garbage machine, because they over-played their hand and made droves of people turn off game requests because it was so invasive.

Now Facebook has maybe hit or neared peak audience and they have no room to grow.

 

[Mulli]

so none of you want to pretend farm with me?

 

[Russ Smith]

Closed down slightly then announced better than expected earnings, up 15% after hours.

And announced a deal for real money gaming with a British company.

Kind of wish I'd bought some more in the 2.10 area just to balance out what I have near 3.

Could see a short term pop before reality sets back in.

 

[jf-08]

Bought 500 more shares of both Zynga and Facebook yesterday.

Got some puts as well on each.