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 (NAS: ZNGA) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Zynga and see what CAPS investors are saying about the stock right now.
San Francisco (2007)
Home entertainment software
Founder/Chairman/CEO Mark Pincus
Trailing-12-Month Return on Equity
$1.2 billion / $100.0 million
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 40% of the 879 members who have rated Zynga believe the stock will underperform the S&P 500 going forward.
Zynga has some fun games, yes, and it's powered by Facebook (NAS: FB) , yes. However, the fact that it relies mostly on eCommerce that is optional does not make for a very good business model. Plus, although Facebook is integral to the Internet presently, Facebook has also been declining a lot in popularity (it's just not hip anymore).
If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit From the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article 1-Star Stocks Poised to Keep Plunging: Zynga? originally appeared on Fool.com.
Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Activision Blizzard and Facebook and has options on Facebook. Motley Fool newsletter services recommend Activision Blizzard, Electronic Arts, and Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.