Zynga Pleading For More Time To Turn Company Fortunes Around With Real Money Gaming Pending

There seems to no rest for the wary CEO of the world’s largest gaming company Zynga. Just when you thought they have turned the corner ad are on their way to return to their former glory, there seems to be another stumbling block. This week saw mixed fortunes for Zynga as their share price took a knock again. The good news was that Quarter 1 earnings were 1 cent a share which beat the analysts forecast of a loss of 4 cents. However in a statement released Zynga expects a 3-5 cent Q2 loss which is worse than the 1 cent lost. The other worrying news are the losses reported of 13% in monthly figures for people playing their games. These pessimistic forecasts and negative results meant a 9% drop in share price to trade about $3.05. The overall picture means that Zynga’s share price has dropped by over two thirds in the last twelve months since their IPO launch.

While anyone reading this would be permitted to ask the question as to whether CEO Mark Pincus can pull off a recovery for the history books? While covering the trials and tribulations of Zynga in the last year we have always been of the opinion that it is well worth a bet on Zynga succeeding with their much anticipated entry into the real money gambling arena.

This is exactly what Pincus is pleading from investors who are weary of false promises. Pincus stated,” We know that 2013 is a year of transition. We continue to expect non-linear, uneven results.”

Besides real money gambling Zynga is focusing heavily on mobile gaming which is taking off due to the growth of smartphones and tablet devices. Zynga’s chief revenue officer Barry Cottle summed up their thinking for the coming year,” We continue to think that any hope for real growth for this nebulous company really depends on what it can do in real-money gaming.”

It won’t be long before we get to see if the world’s social gaming and soon to be real money gaming giant becomes a force to be reckoned with or if they have failed one time too many to restore investors faith.

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