Author Topic: Zynga shares plummet  (Read 5678 times)

jetboy

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Zynga shares plummet
« on: July 26, 2012, 05:26:53 PM »
http://www.theinquirer.net/inquirer/news/2194467/zynga-posts-big-second-quarter-revenue-loss-shares-plummet

Quote
"Zynga blamed Facebook for the loss, saying that the social network had made changes to its web site... ...changed some of the algorithms"

A business model that's entirely dependent on the ranking algorithms of a third-party? Apparently they didn't get the memo...

TallTroll

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Re: Zynga shares plummet
« Reply #1 on: July 26, 2012, 07:27:49 PM »
>> A business model that's entirely dependent on the ranking algorithms of a third-party?

... which also applies to just about every AdSense type, ever.

littleman

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Re: Zynga shares plummet
« Reply #2 on: July 26, 2012, 08:39:44 PM »
... And much of what we all do.  No guarantees in PPC either, that could implode just as easily.

TallTroll

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Re: Zynga shares plummet
« Reply #3 on: July 27, 2012, 11:06:43 AM »
True. AFAIK, none of us managed to turn said reliance on 3rd party ranking algos into a stock market listing, giving us fiduciary responsibility for someone elses decisions, though  ;D

hungrygoose

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Re: Zynga shares plummet
« Reply #4 on: July 27, 2012, 11:39:17 AM »
 "Instead new games were promoted."  << err make some new bloody games then guys!!!! Make addons or something which link into existing games.

Maybe build better mobile games???  Maybe stop just reskinning Farmvil???

Where are the Olympic games? Where are the tie-ins with The Dark Knight Rises, Spiderman, anything else?

jetboy

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Re: Zynga shares plummet
« Reply #5 on: July 27, 2012, 05:18:21 PM »
I think we all know that being almost totally dependent on organic Google rankings for our income is a very risky place to be. That's no small part of why most of us have at least tried to diversify; by offering PPC management, building our own brands etc. Are Brett, Rand or Danny Sullivan extreme (and financially successful) cases of SEOs diversifying?

It sounds like Zynga didn't appreciate that they were in exactly the same situation we've all faced. I doubt a lot of their shareholders did either.

agerhart

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Re: Zynga shares plummet
« Reply #6 on: July 27, 2012, 05:36:46 PM »
I think in Rand's case they chose a different business model for purposes of scale and margins after getting advice from third parties


buckworks

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edo

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Re: Zynga shares plummet
« Reply #8 on: August 12, 2012, 05:30:40 PM »
Wouldn't buy shares with them even at $3. They're like a virus feeding off the popularity of Facebook and completely at the whim of the host. Now that Fbook have dipped their toe into real-money social gaming, why would they promote Zynga's real-money stuff when it comes out next year? Ok, they get a 30% cut but I bet they're on a much better deal with Gamesys for Bingo Friendzy that came out last week.