Facebook And Zynga: Not A High Score
By Skyler Greene:
Zynga (ZNGA), maker of Facebook (FB) games, has fallen to a record low stock price. Why? As mobile gaming takes over, fewer people are playing Farmville and Zynga's other clone games. According to analyst Doug Creutz:
Consumer preferences may be switching decisively to mobile games given that quality is similar, if not better, and mobile games have the added advantage of being playable at any time, anywhere.
Zynga's daily active use dropped 8% in May.This is a problem for Facebook, as I'll demonstrate below.
Click to enlarge.
Mobile Internet: A Two-Pronged Problem for FacebookWhile the rise of mobile internet may be great for Cisco (CSCO), it's not so great for Facebook. I've written before about why I'm not a fan of Facebook stock. What I didn't include in that article was an analysis of the challenges mobile internet poses to Facebook. I'll give one here.First,Complete Story »