Market Overview

Zynga Drops 10%, Proving Lousy Games Suck (The Life Out of Investors)

Is Zynga taking Nintendo lessons? Or is Nintendo taking Zynga lessons? Whatever the case, both companies are taking a dive as investors abandon these game companies in favor of corporations with a brighter future.

Nintendo (NTDOY) has seen continual declines since last Tuesday, at which point the company held its annual press conference at the Electronic Entertainment Expo. Nintendo failed to show anything impressive, leading to massive disappointment among consumers, and huge concerns among investors who had faith that Nintendo had finally learned its lesson.

Meanwhile, Zynga (NASDAQ: ZNGA) continues to be a social games company that promises too much and does not deliver. It produces clone games, and other content that provides very little value. As consumers tire of Zynga's games, so do investors.

Today's drop is one of the most significant. Zynga is currently down more than 10%. In the days since its IPO, Zynga has gone from trading at $9.50 in December to $8 in January, followed by a spike to more than $14 in February and March. Since then, the stock has been declining ever since. Zynga is currently trading at roughly $5 a share.

Be wary, investors. Put your money into game companies that know what they're doing. Put your money into game companies that actually have a future.

Follow me @LouisBedigianBZ

Posted-In: E3 E3 2012 Nintendo Nintendo Wii U Wii U ZyngaNews Tech

 

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