Here's Why We Changed Zynga's Price Estimate To $2.30

Our current valuation reflects ongoing challenges to the company's business, including a decrease in user base, increasing losses, as well as a lack of new major game launches. Two key factors compelled this change in our valuation. First, we have reduced our revenue estimates over our forecast period, owing to the uncertainty surrounding the company's business. Second, we believe that there is a grim outlook for profitability and accordingly have lowered EBITDA margin for the next few year. Thi...