Will Facebook Be Ruined By Zynga’s Collapse?

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HFA Staff
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Facebook Inc (NASDAQ:FB) relied on Zynga Inc (NASDAQ:ZNGA) for 14% of its revenue in the 2011 fiscal year. Today’s crash in Zynga stock, and the resultant pessimistic view of the company’s prospects, means Facebook’s take from the company will surely fall this time around. Facebook is not completely reliant on Zynga, but investor confidence may suffer, if that revenue slows, or reverses growth in recent years. In recent days we’ve already argued that if Zynga Inc (NASDAQ:ZNGA) is to thrive as a company, it should wean itself off of Facebook Inc (NASDAQ:FB). Aside from Zynga, Facebook Inc (NASDAQ:FB) appears to…

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The post above is drafted by the collaboration of the Hedge Fund Alpha Team.