Zynga Earnings Preview: Trends We Are Watching

We expect the company's results in Q2 were driven by strong growth in bookings on the mobile platform. In comparison, its web-gaming business could likely saw continued challenges, as a result of the planned shut-down of several PC-based games. In terms of profitability, we believe that Zynga faced pressure as its ongoing search for the next hit game most likely boosted both R&D and sales and marketing expenses. Over the long-term, we expect Zynga's outlook to improve with the launch of new game...