It's been a rough ride for Zynga
The company plans to show off some of its upcoming games and money-making strategies during tomorrow's Zynga Unleashed conference.
Whether "unleashed" is a reference to the company's namesake bulldog icon or the fact that the stock has been a bit of a dog, investors can use some good news. The stock may have popped after going public at $10 six months ago, but now the stock has fallen to the mid-single digits.
Zynga has come through for the most part. It has posted back-to-back quarters of better than expected profitability in its brief public tenure. It went from accounting for 12% of Facebook's
However, skeptics are more concerned about the rapidly evolving market for casual and social gaming. Facebook players are taking to smartphones, and mobile monetization isn't the same as the audience of focused desktop gamers. Zynga has Millennial Media
Facebook, Zynga, and Millennial Media are all trading below their recent IPO prices.
Studies indicate that the popularity cycle for social games is shrinking. Diversions are peaking sooner, and that puts more pressure on Zynga to continue to crank out magnetic diversions. This brings us to tomorrow when Zynga will let analysts and investors see what it has in store.
There's a lot riding on the company's slate of upcoming releases, and no one knows that better than Zynga.
The Motley Fool owns shares of Facebook. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story, except for Millennial Media. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.