LinkedIn Corp (LNKD), Facebook Inc (FB), Zynga Inc (ZNGA): A Trio of Game-Changing Developments in the Mobile World

Zynga appoints a new leader

Speaking of mobile games, one company that got left in the dust was Zynga Inc (NASDAQ:ZNGA), which once shared a symbiotic relationship with Facebook until those bonds were severed by both parties. Last quarter, Zynga Inc (NASDAQ:ZNGA) reported 20% and 13% year-on-year declines in daily and monthly active users, respectively. Total revenue plunged 18% as earnings fell 81%. The company also laid off 20% of its workforce and closed its New York, Dallas and Los Angeles studios.

Zynga was left behind as interest in its social games waned, and mobile offerings from Electronic Arts, King, Roxio, and ZeptoLab made Zynga Inc (NASDAQ:ZNGA)’s Farmville and Words With Friends look dated by comparison. The company was also constantly criticized for copying other, more successful franchises.

After watching Zynga plunge nearly 40% over the past twelve months, CEO Mark Pincus, who still owns 61% of the company’s voting shares, finally stepped down and handed the reins over to Microsoft Corporation (NASDAQ:MSFT) Xbox division head Don Mattrick. Investors cheered the decision, since Mattrick is often credited for single-handedly making the Xbox business profitable after several years of losses. However, Mattrick’s appointment won’t be the silver bullet that Zynga needs to save the ailing business. Mattrick faces some steep challenges from other hungry mobile gaming companies, and Zynga Inc (NASDAQ:ZNGA)’s former ally Facebook might evolve into its toughest competitor yet.

What a difference a few quarters makes…

Investors who are considering picking up shares of LinkedIn Corp (NYSE:LNKD), Facebook Inc (NASDAQ:FB) or Zynga need to stay on top of the latest headlines, since the long-term outlook of these companies can dramatically shift within the span of a few months.

Of these three companies, LinkedIn appears to be the most compelling long-term investment, thanks to its rapidly growing user base, international exposure, and the disruptive nature of its job search technology. Meanwhile, Facebook is searching for the next source of revenue growth, and becoming a mobile games publisher is a lucrative idea. Lastly, I suggest that investors avoid Zynga Inc (NASDAQ:ZNGA) completely, since this company’s future is filled with too many question marks to be considered a viable investment.

The article A Trio of Game-Changing Developments in the Mobile World originally appeared on Fool.com and is written by Leo Sun.

Leo Sun owns shares of Facebook. The Motley Fool recommends Facebook and LinkedIn. The Motley Fool owns shares of Facebook and LinkedIn. Leo is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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