It takes 2 to duet and the Stranger wants to Duet with you.
If Dewey Cox can duet so can you.
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In early trading today ZNGA already hit another all-time low when the stock sank to $2.85 per share. Since the release of the Financial Results Zynga Reported For Its Second Quarter 2012 Investors became skeptical and it showed in the stock quotes. This is a new stock and it is only the second reporting of Zynga’s financials since it’s IPO. But, Remember this, the company is still trying to establish itself as a force in the markets.
With the type of business that Zynga is and being amateur in the markets Zynga is going to run into some speed bumps. It is very risky to invest into a company that relies solely on the popularity of it’s product in order to generate revenue.
Currently Zynga only sells virtual goods. The company is branching out and looking into other ways of generating revenue. We just haven’t seen them yet. I have made 2 posts in the past regarding 2 such ventures that have the potential of making Zynga a high quality investment. The 2 posts were;
Zynga.com Your New Destination For Play
In the Zynga.com Your New Destination For Play post I mentioned
Zynga Has Also Recently, On February 9th 2012, Made Agreements With Hasbro To Develop A Wide Range Of Products Such As Toys And Games That Will Be Based On Popular And Iconic Brands Of Zynga's. There Could Also Be An Array Of Co-Branded Merchandise.
In the Zynga Taking To The Airwaves post I covered the concept of a new TV show that will be based on Draw Something.
It might be time to draw out the checkbook and consider buying some Zynga (ZNGA) stock shares. Why? Because Zynga and the CBS network are developing a new game show that will be based on the popular Draw Something application.
If Zynga is still pursuing both of these ventures then this stock looks like a bargain while it is selling for under $3.00 a share. This means that you should buy now and stay in for the long haul.
In the mean time, Zynga should try retaining it’s player base that it has in it’s games. Especially those games, like Mafia Wars, where they could easily be adapted into both ventures of toys and TV.
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