Can Zynga Inc (ZNGA) Overcome Its Greatest Threat?

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Still, the risk here is tremendous. Zynga Inc (NASDAQ:ZNGA)’s development costs for games that have falling user rates are too high. We’ve seen it again and again, every fad game is just that: a fad. Everyone plays them until no one plays them.

Zynga Inc (NASDAQ:ZNGA) has a long road ahead of convincing not only investors and analysts that the company is worth a glance, but gamers as well. Friday’s earnings report will show some status updates, but the long-term picture for investors is far more important in this case. Do not buy just on Zynga’s earnings, whether bad or good. Take the whole story into account.

The article Can Zynga Overcome Its Greatest Threat? originally appeared on Fool.com.

Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft.

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