That didn't take long.
Only a week after Zynga
Watch your back
Zynga's been a public company for all of three months and has been a company for just under five years. Its available information shows a company growing rapidly, but also one whose growth is now slowing rapidly. Zynga's business model offers relatively minimal moats, a quality driven home by its recent buyout of out-of-nowhere competitor OMGPOP. To drive home just how fast a hot property can be surpassed, the latest Angry Birds iteration flew (angrily, of course) over OMGPOP's top-selling game the day after the acquisition.
So what kind of message is Pincus sending? Steve Jobs sold his early shares when ousted from Apple
Zynga can't buy out every competitor that crops up. Its business model has been allegedly codified as "copy what [our competitors] do … until you get their numbers." There's nothing necessarily wrong with lifting the best elements off other games. Activision Blizzard
Pincus isn't a dumb guy. He's built a billion-dollar business in half a decade. But that doesn't mean he sees his company staying dominant, and a big sale so soon after the company's post-IPO run-up sends me the wrong signal. If you're looking for long-term growth, there are better companies -- and better industries -- to invest in.
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Fool contributor Alex Planesholds no financial position in any company mentioned here. Add him on Google+or follow him on Twitter, @TMFBiggles, for more news and insights. The Motley Fool owns shares of Activision Blizzard, Google, and Apple and has written calls on Activision Blizzard. Motley Fool newsletter serviceshave recommended buying shares of Google, Apple, and Activision Blizzard, creating a bull call spread position in Apple, and creating a synthetic long position in Activision Blizzard. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter services free for 30 days.