Stock down 75% YTD. Number of users going up, number of paying customers going down.
Incredible exodus of top executive talent, always one of the biggest warning signs for impending disaster.
Another incompetent acquisition: OMGPOP for almost $200 million (4x revenue). Writedown of 50% of purchase price after 7 months. Unclear why it was necessary to buy this company (makes "Draw Something") instead of copying it, since there are no barriers to entry.
Totally dependent on FB for revenues (some 90%), so that when FB changes Zynga must adapt super-fast.
Pincus onloaded 16 million shares after IPO lock-up period ended, not a crime to be sure, but a clear signal on what he thought of the company's prospects.