Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online social games operator Zynga (Nasdaq: ZNGA ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Zynga's business and see what CAPS investors are saying about the stock right now.
Zynga facts
| Headquarters (founded) | San Francisco (2007) |
| Market Cap | $3.7 billion |
| Industry | Home entertainment software |
| Trailing-12-Month Revenue | $1.2 billion |
| Management | Founder/Chairman/CEO Mark Pincus CFO David Wehner |
| Trailing-12-Month Return on Equity | (40.3%) |
| Cash/Debt | $1.1 billion / $0 |
| Competitors | Dena Electronic Arts Gameloft |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 56% of the 480 members who have rated Zynga believe the stock will underperform the S&P 500 going forward.
A couple of months ago, one of those Fools, GetDatGuap, succinctly summed up the Zynga bear case for our community:
Look at how they operate -- buy up the biggest game fad (or make a quick copy) and milk it dry. There is no way this is sustainable. Game [developers] HATE this company and they will be out of ideas and a solid workforce shortly. Not to mention, most people who play these games will never spend a dollar on it. This company is going nowhere.
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