Wednesday, July 25, 2012

Zynga Gets Hammered: Misses Pretty Badly

Well it seems that Farmville and Words with Friends is just not paying the bills anymore.

But what really dragged on Zynga's stock is the fact that the company lowered its outlook for 2012, saying it now expects bookings in the range of $1.15 billion to $1.225 billion, far short of the up to $1.5 billion Wall Street expected. 

Now the company’s projecting non-GAAP EPS for the year in the range of 4 to 9 cents, just a fraction the 26 cents that’s Wall Street’s consensus.  

This is guiding quite a bit lower to say the least. I wonder if this bodes ill for Facebooks earnings tomorrow? I just thinking the give the game away for free and use ads model might not be a good recipe for growth unless there are compelling things to spend money on.

No comments: