1-Star Stocks Poised to Keep Plunging: Zynga?

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 and see what CAPS investors are saying about the stock right now.

Zynga facts

Headquarters (Founded)	San Francisco (2007)
Market Cap	$1.8 billion
Industry	Home entertainment software
Trailing-12-Month Revenue	$1.3 billion
Management	Founder/Chairman/CEO Mark Pincus CFO David Wehner
Trailing-12-Month Return on Equity	(40.5%)
Cash/Debt	$1.2 billion / $100.0 million
Competitors	Activision Blizzard (Nasdaq: ATVI  ) Electronic Arts (Nasdaq: EA  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 40% of the 879 members who have rated Zynga believe the stock will underperform the S&P 500 going forward.

Earlier this month, one of those Fools, GenFrogKing, succinctly summed up the bear case for our community:

Zynga has some fun games, yes, and it's powered by Facebook (Nasdaq: FB  ) , yes. However, the fact that it relies mostly on eCommerce that is optional does not make for a very good business model. Plus, although Facebook is integral to the Internet presently, Facebook has also been declining a lot in popularity (it's just not hip anymore).

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.