Zynga Just Folded a Terrible Hand. Should You Buy Now?

Shares of Zynga closed down 14% on Friday after the social-game maker issued weak third-quarter guidance that disappointed investors, and also shocked speculators by announcing it's abandoning efforts to pursue a license for real-money gaming in the United States.

Curiously enough, in the video below, Fool contributor Steve Symington says he actually agrees with the Zynga's decision to focus on its biggest opportunity with freemium social games. But that doesn't necessarily mean you should go out and buy shares of Zynga on this pullback. To hear why, please watch the video below for Steve's full take, then let us know what you think in the comment box below.

The Motley Fool's chief investment officer has selected his No. 1 stock for this year (unsurprisingly, it's not Zynga). Find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

The article Zynga Just Folded a Terrible Hand. Should You Buy Now? originally appeared on Fool.com.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

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