Analysis Archives - Page 3 of 3

Cartoon Network: Are Ratings Suffering Due to Netflix Deal?

By Valerie Savran
September 16, 2013

An analysis of ratings for Turner’s Cartoon Network suggests that children’s cable programmers may be suffering as a result of Netflix deals. At the beginning of 2013, Turner solidified a deal with Netflix that included shows on Cartoon Network and Adult Swim. Since Cartoon Network content became available on Netflix at the end of March, data has revealed that ratings in Netflix households have been 10 percent lower than those of non-Netflix households. Continue reading Cartoon Network: Are Ratings Suffering Due to Netflix Deal?

Financial Analyst Weighs Pros and Cons of Zynga $7 Billion IPO

By Karla Robinson
December 5, 2011

In an analysis of Zynga’s pricy IPO, Forbes contributor Peter Cohan advises investors to “avoid this stock.”
“Social media gaming sweat shop Zynga filed to sell 14.3 percent, or 100 million, of its shares, valuing the lot at $7 billion,” he writes. “Should you pay the price to get in on its IPO? No.”
Zynga does have some things working in its favor: 1) It operates in the highly profitable virtual goods market that is expected to more than double by 2014; 2) It has a competitive advantage with the largest player audience on Facebook and 383 percent annual growth rate from 2008 to 2010; and 3) It has the ability to sustain its leadership position. “In October, Zynga announced Project Z that would lessen Zynga’s dependence on Facebook users. If that and its effort to go mobile work, Zynga would be in a stronger long-term position,” suggest the article.
So why not invest? Zynga’s IPO valuation is too high relative to its competitors; its growth is slowing down; and, its net income shrank for the majority of 2011 leaving “razor thin” 3.7 percent net profit margins. “No amount of sweat-shopping will fix Zynga’s slowing growth,” reports Cohan.