Diamonds and Dogs

7/26/12

Zynga Inc. (ZNGA)

Zynga is getting zinged today down 37.57% at $3.17. The company saw its shares get crushed today after releasing its earnings report. Revenue came in at $332 million, turning into an adjusted profit of just a penny by the time it reached the bottom line. Analysts were looking for more up top and down below, calling for $343.1 million in sales and $0.06 per share in profit. On a GAAP basis, the company lost $22.8 million, or $0.03 per share. The poor earnings led Zynga to lower 2012 guidance causing analysts to downgrade the company. Stifel Nicolaus downgraded its rating on this company from buy to hold, and BTIG Research downgraded its rating from buy to neutral. Investors are looking as though they are tired of playing games with Zynga.

Akamai Technologies Inc. (AKAM)

Akamai Technologies rallied today up 23.89% at $35.00. The company makes equipment and software that customers use to improve the delivery of video and other content online. Akamai saw a bounce come after releasing a solid earnings report. The company reported a profit of $44 million, or 24 cents a share, on revenue of $331 million, compared with earnings of $48 million, or 25 cents a share, on $319 million in sales in the year-ago period. Profit did slip, however once one-time items were excluded Akamai would have earned 43 cents a share. This beat the estimates of analysts which were forecasted at 37 cents a share on $326.2 million in revenue. Akamai also is expecting to beat analyst estimates for the third quarter 2-4 cents per share.

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