Why Zynga is vastly undervalued
Zynga CEO Mark Pincus
(Credit: Rafe Needleman/CNET)
Zynga’s stock has been in a freefall since its initial public offering, and the tech pundits and press have been looking on with schadenfreude as it continues to drop. Zynga is now worth essentially nothing: Its market capitalization of $1.82 billion is roughly equal to the value of its cash and real estate holdings, even with this week’s announcements of real money gambling and a $200 million stock buyback.
How can a company that brings in $1.2 billion a year, and recently cut costs in order to achieve profitability, be worth nothing?
It…
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