Here’s More EVIDENCE Facebook and Zynga Don’t Give a DAMN About Shareholders
Zynga (NASDAQ:ZNGA) announced earnings yesterday, and they were UGLY. Well, not if you’re CEO Mark Pincus and you’ve been dumping shares and taking a sweet salary. Pincus is getting his despite the stock crashing 38% today to a new all-time low of $3.00. Yes, that’s 81% below Zynga’s 52-week high of $15.91.
First, Mark Zuckerberg sucked every last drop of value from Facebook (NASDAQ:FB) shares at the IPO. Groupon’s (NASDAQ:GRPN) founders did the same. Public shareholders? Oh, they are bag holders. Didn’t you know? Wait until you hear what Pincus thinks of the suckers, I mean shareholders, who invested in his business…
Don’t Miss: Facebook CEO: YOU Said Jump, I Said How High >>
Zynga (NASDAQ:ZNGA) CEO Mark Pincus told Reuters he doesn’t base success on that pesky little thing called “stock price”. (Ironically, in the video below, Mark brazenly boasts a “Bubble Safari” t-shirt — you couldn’t make up stuff this hilarious.)
So, exactly how does Pincus measure success? Hold your laughter: “I am measuring our success in two ways: One is I am measuring it anecdotaly of ‘Are we making an experience that gets through to our moms?’” Yup. MOMS!!! LOL. Not shareholders. MOMS!!
When you care about moms more than shareholders, you end up with a stock that can CRASH 38% after an earnings release. That’s trash if you ask me.
If you think Pincus doesn’t have the experience to run the ship at this level, you’re correct. In the video below Pincus goes on to shrug off his $183 million purchase of the overnight success OMGPOP (which has since lost its buzz) and says he will continue making risky bets. He also admits Zynga is not a powerhouse like Electronic Arts (NASDAQ:EA) or Activision (NASDAQ:ATVI), rather a company which is a new startup every month. As public investors begin to understand this truth, expect more to bail on the stock as they clearly are today.
As a businessperson, I have a ton of respect for Mark Pincus. He’s built a business at world-class speed. However, the hubris and lack of respect for public shareholders is a disgrace — not only to Pincus and his C-Suite, but to the American public markets and IPO system.
Now, sit back and watch what will most likely become a relic of this era in stock investing another 10 years from now: