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If they were already public, this would likely cause a huge drop in the stock price. Similar to what happened to Netflix when they guided down on number of sub
by jstanderfer 15y ago
If they were already public, this would likely cause a huge drop in the stock price. Similar to what happened to Netflix when they guided down on number of subscribers.
- Joakal 15y agoNetflix had bad publicity surrounding price increases. Did Zynga do anything to cause the user base to decline?
- jstanderfer 15y agoWhen you've sold yourself as a growth story, the reasons for the decline don't matter to Wall Street. Sell side analysts build complex earnings projections models based on estimated compounding growth rates. Even a slight reduction in the growth rate has a large impact on projected earnings a few years out and a negative growth rate blows up the entire model.
- deleted 15y ago[deleted]
- SwellJoe 15y agoDid Zynga do anything to cause the user base to decline? You mean, other than being evil incarnate?