After defying gravity over the last year or so, shares of social game maker and potential turnaround play Zynga (NASDAQ:ZNGA) have had a rough go of it of late, as has Zynga's best available competitor and recent IPO black sheep King Digital Entertainment (NYSE:KING).
Neither Zynga nor King Digital Entertainment is especially at fault -- their recent woes have more to do with broader market sentiment than company-specific issues. However, no matter how you
slice it, Zynga and King Digital Entertainment both sit squarely in the red over the past several weeks.
This is by no means the only shared similarity shared between Zynga and King Digital Entertainment. Although they differ in terms of their product portfolio, Zynga and King Digital Entertainment both utilize the same upfront cost-heavy, low-paying customer model to generate returns for their shareholders. And speaking of shareholders...
Zynga reports first
Zynga reports after the market's close on April 23. For the record, it isn't entirely clear when King Digital Entertainment reports.
Zynga investors have plenty to wring their hands over, as Zynga still remains mired in the ongoing turnaround efforts led by somewhat newly minted CEO Don Mattrick. In the video below, tech and telecom specialist Andrew Tonner runs through the specific metrics and key issues Zynga investors should be on the lookout for when it reports earnings next week.
A growth market that puts Zynga to shame
Let's face it, every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer Amazon.com in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure-play" and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.
Andrew Tonner has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.