Why You Should Sell Zynga

By Andrew Tonner and Austin Smith – Dec 4, 2012 at 8:31PM

NASDAQ: ZNGA

Zynga

A look at Zynga from the bear perspective.

After Zynga (ZNGA) went public, the frenzied optimism around this company burst, and shares plummeted. However, now that the stock is trading at extremely affordable prices, is it ready for a rebound, or is this one to avoid altogether? In this video, Motley Fool analyst Andrew Tonner discusses a key number for Zynga: paying users the company has. That number, says Andrew, is very low, and revenue growth at the company is slowing.

Andrew Tonner has no positions in the stocks mentioned above. Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Activision Blizzard and Facebook and has the following options: long JAN 2014 $20.00 calls on Facebook. Motley Fool newsletter services recommend Activision Blizzard, Electronic Arts, and Facebook. 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.