Zynga Inc (ZNGA)’s Most Important Metric

Facebook likes ABPU

Facebook Inc (NASDAQ:FB) receives a cut of Zynga’s in-game purchases and from the advertising done on the social networking giant’s platform. That money added up to make Zynga responsible for 12% of Facebook’s overall revenues in 2011 and 9% in 2012. The codependency of the companies explains why one tends to move with the shares of the other.

Here’s a look at the share price growth for the two companies over the past year. Notice the similar shape?

ZNGA data by YCharts

If the switch from Credits to local currencies winds up tanking Zynga’s ABPU, Facebook might work to develop another payment alternative. Facebook Inc (NASDAQ:FB) had had its own rough start, and doesn’t want 12% of its business in jeopardy.

Foolish final thoughts

Zynga’s earnings report is expected after the market closes on Wednesday. Look first at the APBU and its year-over-year growth. Then check to see if DAU had a proportionate change. It’s the easiest way to check if Zynga’s revenue will remain weak– and if Facebook’s shares get shaken.

The article Zynga’s Most Important Metric originally appeared on Fool.com.

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