[citation][nom]shqtth[/nom]haha suckers for investing in zynga. dumb people deserve to loose their money.If the investors did their research they would see social networking games are a fad and dying, so you can say all you want, but the investors were brain dead.Al thought I don't think its cool that they sold off all stock cleaning out the company so the company can't grow as it as no stocks itself to sell. they gave too much stock to the nerdds and not enough stock to the company to raise funds.Also we are only talking about a 10million dip in sales they still made 330 million thats crap loads for stupid ass game..3% dip in sales. big deal.. very small, but my question is how the hell did the end up with a 22million loss? are they buying drugs with all that money? because i know they are not using the money to pay good programmers as their games suck. Something smells.[/citation]
I'm fairly sure that the purpose of companies such as Zynga, Facebook, and others like them is strictly get richer fairly quick schemes for the people controlling the companies (maybe not always quick, but I think that the point is made well enough).
Look at Zynga. All of the directors and such probably sold everything months ago. The company lost money, but they defintiely didn't. Heck, with Facebook, some of their directors made over a billion dollars by selling all of their stock. Mark Zuckerberg, as the CTO of the company, gave them all (including himself) the stocks that they sold back to them for free, so they basically sold and made billions altogether and got all that they sold given back for free. Mark himself sold his stock for something like 1.1B dollars (that's ignoring tax; he got something like 700 or 800 million USD of it).
These companies aren't using business strategies that are going to let them keep going up. They went for an IPO that is far above what they should have for them and then sold ASAP. They literally seemed to have done it strictly to make themselves billions. I'm no expert in this, so I can't say that I know even most of the details around it, but it doesn't take an economical genius to look this up on yahoo finance and ameritrade.