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Mon, July 30, 2012

Facebook and Zynga Shares Fall Sharply After Quarterly Results Raise Growth Concerns


Published on 2012-07-30 05:37:21 - Market Wire
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July 30, 2012 08:20 ET

Facebook and Zynga Shares Fall Sharply After Quarterly Results Raise Growth Concerns

Five Star Equities Provides Stock Research on Facebook and Zynga

NEW YORK, NY--(Marketwire - Jul 30, 2012) - Shares of Zynga and Facebook fell sharply last week as quarterly results signaled a slowdown in growth for the companies. Also Facebook failed to provide investors with any kind of earnings forecasts in their release. "The lack of a forecast for the future is what people are concerned about and potentially spooked by," said Neil Bearse, associate marketing director at Queen's School of Business. Five Star Equities examines the outlook for companies in the Social Media Industry and provides equity research on Facebook Inc. (NASDAQ: [ FB ]) and Zynga Inc. (NASDAQ: [ ZNGA ]).

Access to the full company reports can be found at:

[ www.FiveStarEquities.com/FB ]

[ www.FiveStarEquities.com/ZNGA ]

"Lower mobile monetization is becoming an all-too-familiar theme in Internet stocks, already having impacted Google, Facebook and Pandora. It is now impacting Zynga in a major way, as the company disclosed that mobile users monetize at less than half the rate of desktop users," said Canaccord Genuity's Michael Graham

A recent report from Capstone analyst Rory Maher showed that Facebook users in U.S. over the last six months have declined 1.1 percent. Zynga reported approximately 92 percent of revenues were generated through Facebook in the first quarter.

Five Star Equities releases regular market updates on the Social Media Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at [ www.FiveStarEquities.com ] and get exclusive access to our numerous stock reports and industry newsletters.

Facebook reported revenues for the second quarter of 2012 totaled $1.18 billion, an increase of 32 percent, compared with $895 million in the second quarter of 2011. GAAP net loss for the second quarter was $157 million, compared to net income of $240 million for the second quarter of 2011.

Zynga reported net loss was $22.8 million for the second quarter of 2012 compared to net income of $1.4 million for the second quarter of 2011. The company also lowered their outlook due to a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform. Shares of the company fell over 37.48 percent last Thursday.

Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:

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