Is Good News Bad News for Zynga Investors?

E = Equity to Debt Ratio Is Strong

The debt-to-equity ratio for Zynga is strong. The balance sheet is excellent.  

Debt-To-Equity

Cash

Long-Term Debt

ZYNG

.05

$1.32 Billion

$100 Million

FB

.37

$10.45 Billion

$530 Million

 

T = Technicals on the Stock Chart Are Poor

Zynga has made a strong move recently, but year-to-date, it has been an unmitigated disaster.

1 Month

Year-To-Date

1 Year

3 Year

ZNGA

24.17%

-72.16%

N/A

N/A

FB

42.75%

-22.79%

N/A

N/A

S&P 500

3.79%

16.06%

18.19%

37.57%

 

At $2.62, Zynga is currently trading above its 50-day SMA, close to its 100-day SMA, and well below its 200-day SMA.

50-Day SMA

2.38

100-Day SMA

2.76

200-Day SMA

5.81

 

E = Earnings Are Poor, But Revenue Has Been Impressive

Annual revenue is the most impressive component for Zynga. Earnings have been poor.

2007

2008

2009

2010

2011

Revenue ($)in millions

N/A

19.41

121.47

597.46

1.14B

Diluted EPS ($)

N/A

-.18

-.31

-.11

-1.40

 

A similar situation can be seen on a quarterly YoY basis.

9/2011

12/2011

3/2012

6/2012

19/2012

Revenue ($)in millions

306.83

311.24

320.97

332.49

316.64

Diluted EPS ($)

0.00

-1.41

-.12

-.03

-.07