Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online social games operator Zynga (Nasdaq: ZNGA ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Zynga's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||San Francisco (2007)|
|Market Cap||$3.7 billion|
|Industry||Home entertainment software|
|Trailing-12-Month Revenue||$1.2 billion|
|Management||Founder/Chairman/CEO Mark Pincus
CFO David Wehner
|Trailing-12-Month Return on Equity||(40.3%)|
|Cash/Debt||$1.1 billion / $0|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 56% of the 480 members who have rated Zynga believe the stock will underperform the S&P 500 going forward.
Look at how they operate -- buy up the biggest game fad (or make a quick copy) and milk it dry. There is no way this is sustainable. Game [developers] HATE this company and they will be out of ideas and a solid workforce shortly. Not to mention, most people who play these games will never spend a dollar on it. This company is going nowhere.
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