Risks Cloud Value Of Zynga’s Finances

Many are motivated to research vehicles for trading and investing in order to make a buck. It takes time and work and even then, sometimes the conclusion reached is not proven correct. As the online gaming company Zynga (ZNGA) is scheduled to report earnings on Oct. 24, with any turnaround there could be upside. While my intuition says that it could be about to turn a corner, most of what has been found upon examination causes hesitation.

First off, virtually everything for the company is dependent on Facebook(FB), though there has been improvement. In 2012, the social media site generated 87% of Zynga’s revenues, and that figure is now down to 76%. If there are any restrictions to access, it can negatively impact game playing. One ongoing example is The People’s Republic of China, where Facebook is blocked.

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