Thursday, April 24, 2014

Zynga Q1 2014 net loss of USD61 million ?

Zynga Q1 2014 net loss of USD61 million ?
"Zynga is projecting revenue for Q2 2014 to be in the range of USD140 million to USD160 million, with a projected net loss of between USD75 and USD65 million."

Astonished to see how they show you like a success when it is a failure!

Some Internet companies are really bubbles like
and others like Tinder as well?
never made a dime in profit!

There is a large dotcom bubble fueled by venture investment funds, investors who are dragging other investors to continue investing until they can sell shares of the company and recover leveraged money, but the last holder of shares is going to lose.
Many technology companies, without having a concrete business model (supposedly will generate revenue from advertising and premium subscription accounts) receive millions of dollars in funding to offer something free, acquiring fastly a large mass of captive users as if they had made them addicts, and then, the exit strategy (for investors) is to get someone to buy the company at a staggering figure, as did Blogger, Fotolog, MySpace, YouTube, Skype, Bebo and others. They are like continually inflating balloons and they need to find a buyer before they explode. If they can not find a private buyer for the entire company, the investors had the strategy of going public, to start trading its shares on the New York Stock Exchange, they turn those pieces of paper (shares) in real money, they get thousands of buyers purchasing lower small parts (shares).

Soon or later that bubble should explode!

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