Pixel Envy

Written by Nick Heer.

This Bubble Ain’t Gonna Last

Douglas MacMillan writes for Bloomberg:

Shares slumped as much as 42 percent in extended trading, dragging Facebook’s stock down as much as 9.7 percent. Sales were $332.5 million, Zynga said today in a statement. That missed the average $343.1 million analyst estimate, according to data compiled by Bloomberg. Profit excluding some items was 1 cent a share, less than the 6-cent estimate.

“How does Zynga make their money?” you may be asking.

Zynga, based in San Francisco, makes money by selling virtual goods within its games — say, a gun in “Mafia Wars” or a tractor in “FarmVille.”

Yeah, that’s stable.