Do you actually think Zynga will trade with a P/E of 400+?
Lets fast forward to Jan 2015, Zynga happens to hit their target of .01 EPS profit for 2014- Good for them. If Zynga is trading at $4, that's a PE of 400!!!
This stock is WAY OVERPRICED. It is still only worth the $3 or so that analysts have broken down and explained.
From Sterne Agee:
"With nearly $2.00 per share in cash on the balance sheet, $0.50 per share in value for the company’s headquarters and an estimated $0.70 in Enterprise Value (1x our 2014 bookings estimate of $579M), we think the stock is mostly pricing in the near-term risk that Street estimates may prove too high."
I dare someone to say "well amazon trades at 1300X"
Amazon pulled in $79 BILLION this year in revenue and is THE ONLINE MARKETPLACE. Zynga is a $hit stain in the world of gaming. much different ballgame.
Sterne Agee comments is to justify their negative note two weeks ago. Just trying to save face. Now they're use 1X book as justification. Plz ZNGA will deserves much better. BTW, I bet that next week you'll see a new game released that will have the addiction of Candy Crush. DM is going to keep shorts at bay now. He said turn around would take 2-3 qtr's when he started. After 1 qtr he's off to a good start.