Zynga Names CEO

Discussion in 'Stock Market Forum' started by Rainman, Mar 2, 2016.

  1. Rainman

    Rainman Senior Investor

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    Zynga stock soared after it's founder and CEO stepped down again. A former executive of Electronic Arts will be taking his place at the helm. His experience at Electronic Arts might be what the struggling company needs to reclaim it's place at the top as the leading provider of social games.
     
  2. pwarbi

    pwarbi Senior Investor

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    This can only be good news for Zynga. Whenever a company gets a new CEO, the price often goes up aswell as peoples confidence. In this case, the fact that they've appointed somebody with a good track record in the field from a successful company such as EA is even more for them to cheer.
     
  3. petesede

    petesede Guest

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    It is a dead company. It was basically a one-hit-wonder in a game genre that has now been saturated. Corporations do not make good games, they make mediocre games and then spend a ton of money marketing them. Farmville was an indie game that was a new concept and perfectly timed with the rise of facebook and piggybacked on the huge growth spurt of facebook. Since Farmville, Zynga has done nothing except made derivative games and then spent a huge amount of money trying to market them. The rise of game engines like Unity and Unreal have made indie development faster and cheaper, and have made it much easier for creative people to stay indie, especially for mobile and facebook type games.
     
  4. Steve Dawson

    Steve Dawson Active Member

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    Thats true, they were one of the pioneers of Facebook games and had a stranglehold on the market for a few years. Even I used to play their free poker game for fun, and I'm no gamer, just a poker addict. They've also suffered from a fair amount of negative publicity from gamers, and programmers who were former employees. The market in the type of simple games they once produced has been completely flooded with other games now, mostly better suited to the IOS/Android market, which wasn't anywhere near as large when they first started up. They should really find another niche to move into because I think any investment in that market is unlikely to meet with any real success.
     
  5. ScooterBrandon

    ScooterBrandon Senior Investor

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    The VG market can turn on a dime and change quite fast. Fortunes are made and lost all the time and new comers can get big fast.
    Look at Nintendo's up's and downs. Look at the demise of Sega. Look at how Sony/Microsoft came from nowhere to dominate.
    Hopefully with the new CEO they can turn things around for their investors and put out some original titles.
    Games have shifted to FB, online and mobile and it's mostly middle agers who are playing them now.
     
  6. Corzhens

    Corzhens Senior Investor

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    I agree with that price hype of stocks of a company with a new CEO. When Yahoo's CEO resigned, they were hoping for an increase in the value of their stocks and from what I remember their stocks increased a bit and is not stable. However, a new CEO is not sure way of enhancing the image of the company. What is really needed is a good performance in the financial side that the company is earning. With that indication of profit, a more stable price increase will be in effect.
     
  7. rz3300

    rz3300 Guest

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    Well that is certainly good news for the shareholders that they brought someone in who has some experience. It is always telling what the true status of the company is when their stock prices fluctuate, so a keen eye can really spot good indicators. Keep your eyes open, this should be an interesting one to watch.
     
  8. petesede

    petesede Guest

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    The thing is that there is simply nothing I think Zynga can do within the industry. I know that not a lot of you know what Unity or Unreal are, but they are basically a program that allows you to make simple games. They are also free.

    When Farmville came on the scene, both of those engines were not free, and rather difficult to use. There was also not a lot of community around to support you. Now there are probably thousands if not tens of thousands of tutorials. If you go to any app store, you will see how quickly and easily it is for people to create mobile and facebook games, there are hundreds of thousands of them being produced by people working a few months from their home.

    Changing CEOs of zynga and expecting a difference is like changing the CEO of a company that makes 8-track tapes and expecting a difference.

    The time when you needed a multimillion dollar company to make mobile or facebook games is over. And worst yet, their corporate overhead and bureaucracy makes them much worse at making small games than indie guys doing it as part-time jobs.
     

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