I think you are absolutely correct. I like your analysis. Any investor should take a stroll over to the Townsend Street headquarters where thousands of the best and brightest toil away. Just contemplate the overhead, keeping in mind that the majority of the game users play for free. Sorry, I don't need any virtual goods. This company has the capacity to bleed through capital at mach speed; like Facebook, their revenue model is questionable to say the least. It is a company, like FB again, of pure hype. I say this, though I covered my short on Friday. The sheep/manipulators can still drive this stock up. I couldn't argue with Friday's chart. It was a great ride from $14- and change to the basement. $3- is definitely possible, and ultimate demise. I just didn't like the risk factors. Sometimes you just cover too early. I'm on to shorting Facebook. I may revisit this rubbish at a later date. We will see Facebook trading at $14- and less. We are also in the midst of huge systemic market risk.
odonnellm66 you are so right! just because they gain a few million users doesnt mean that they will make any money! their prior games also had huge surges in users ...but then what? they lost more money since inception ..more than i have ever seen for a company. its all about controlling costs. your company can make a billion dollars but can you control yours costs to keep that money. in the case of ZNGA, hell no. its all about fundamentals people.