Zynga has had a tough year. The company just cut its earnings outlook on Friday and its stock is trading in the low single digits after a high of over $15 earlier this year. Additionally, some senior executives recently departed the company.
People love to hate on Zynga right now and predict the company's imminent demise, but there may be some light on the horizon. This article describes Zynga's strong cash flows and cash position, for example. Zynga has made some great inroads into the mobile space, even though most objective observers believe that it overpaid or the development studio that created the Draw Something app. Additionally, its platform may make it a good target for acquisition in the near future.
The bottom line is that the company is hardly in danger of collapse anytime soon.
No comments:
Post a Comment