Zynga (NASDAQ:ZNGA) keeps getting smaller as the company tries to find ways to cut costs. To this end, it announced the dumping of 11 game titles, which include PetVille, Mafia Wars 2 and FishVille.
All of these games had meager traffic numbers. In fact, Mafia Wars Shakedown had only 1,000 monthly active users!
While Zynga is still the dominant game developer on Facebook (NASDAQ:FB), the platform has seen increasing competition. What’s more, Zynga recently ended its joint venture with the social network, which allowed preferential treatment.
Of course, Zynga’s main focus is on mobile games, with the likes of Texas Hold ‘Em Poker and Words With Friends. Cutting costs aggressively will certainly give Zynga more resources to devote to the business.
Yet investors continue to be skeptical. Since March, Zynga shares have gone from $15.91 to $2.42.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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