Admittedly, I was being courteous in my review of Zynga's long-term prospects in my post in Technorati. They are still a multi-billion dollar company, so Mark Pincus or any of its investors have nothing but tears of joy.
My analysis was towards various statements I've heard that it was "game over" within the social gaming space and that Zynga will be the juggernaut forever. Knowing the gaming market, I just saw a few signs that told me the opposite, which I can say has happened since they have experience revenue decline over the past two quarters.
My original post from June 2011:
"Zynga. The juggernaut of social gaming has some analysts saying "game over" and conceding to his position as the dominant player in this new market. This reminds of how some people were saying Darko Milicic was going to be a "bona fide superstar". Also reminds me of the chatter that app makers Slide and RockYou were going to be billion dollar babies a few years back. If you know gaming, the tides can turn fast so $500 million in revenues can become $50 million in a few years. Supposedly Zynga is recently making "headcount" acquisitions of companies based on number of engineers, so I wonder if they are able to get the best talent and retain them in this manner? Well, I know John Doerr, the Coach K of Silicon Valley is big on him, but I'm 50/50 on this prospect. He could become a superstar or just a solid contributor like a Shane Battier."
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