Zynga Reports Weak Earnings: Hot Trends

NEW YORK ( TheStreet) -- Popular searches on the Internet include Zynga ( ZNGA) as the social gaming company reported second-quarter earnings far below expectations.

Zynga reported earnings of 1 cent a share on $332 million in revenue for the quarter, while analysts polled by Thomson Reuters expected the company to report 6 cents a share on $344.85 million in revenue.

Zynga also cut its fiscal-year 2012 forecast to earnings of 4 cents to 9 cents a share, below analysts' forecasts of 27 cents. Zynga cited a decline in its existing Web games due to a "more challenging environment on the Facebook web platform" as one of the reasons for cutting its forecast. The company depends on Facebook for a significant portion of its revenue.

Zynga also said delays in new game launches and reduced expectations for its game Draw Something contributed to the reduced forecast.


Starwood Hotels and Resorts Worldwide ( HOT) is trending as the hotel franchise posted a better-than-expected quarterly profit, but net income fell from a year earlier.

Starwood's said quarterly profit was helped by an increase in room rates. The company said revenue per available room rose 6.9% in the quarter. Net income fell to $122 million, or 62 cents a share, down from $131 million, or 68 cents, a year earlier.

The company said it expects positive trends to continue through the rest of the year. Starwood franchises hotel brands including W, Westin and Sheraton.


Nomura Holdings ( NMR) is another popular search. The company's CEO Kenichi Watanabe has quit the investment bank, and Nomura has named Koji Nagai as his replacement.

Watanabe's resignation, which took place after an insider trading scandal at the company, will take effect on Aug. 1. Nagai said he plans to create a "new global strategy" for the bank.

Nomura also said there was a high likelihood that additional insider trading leaks would be discovered. Nomura has acknowledged it was the source of leaks on planned share offerings by several companies. The company's attorneys have found that equity sales staff would receive insider information about stock offerings from colleagues and then share the information with investors.


The chatter on Main Street (a.k.a. Google, Yahoo! and other search sites) is always of interest to investors on Wall Street. Thus, each day, TheStreet compiles the stories that are trending on the Web, and highlights the news that could make stocks move.

-- Written by Brittany Umar.

Brittany joined TheStreet.com TV in November 2006 after completing a degree in Journalism and Media Studies at Rutgers College. Previously, Brittany interned at the local ABC affiliate in New York City WABC-TV 7 where she helped research and produce On Your Side, a popular consumer advocacy segment.

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