1.$ZNGA has approx. 260 million subscribers or close to 50% of all Facebook $FBOOK users… That is a GOOD thing to be tied to Facebook’s growth.
2. The most rapidly growing sector for both $ZNGA and Facebook $FBOOK is the over 40 consumer.That bodes well since that demographic is a sector that spends (and works.)
3. The “virtual goods” market was less than $10 million in 2005, and has grown to a market that will top $3 billion in 2011. $ZNGA is the largest provider of “virtual goods” and that market is expected to grow to $10 billion by 2015.
4. As $ZNGA expands, look for “branded virtual goods” to become more and more a part of their revenue. Fashion and athletic apparel retailers will be the most apparent advertisers/Sponsors of ZNGA as users “dress” their avatars. E.g. Dressing your Mafia Wars Don in a Versace Suit, or Bruno Magli Shoes. Or shodding your avatar in Jimmy Choo’s shoes, and Michael Kors $KORS apparel from head-to-toe. Imagine your virtual LeBron James in the latest custom Nike’s $NKE. The sponsorship possibilities are endless.
5. $ZNGA will be able to develop games that are digtially updated on the fly, like sports and military games. Imagine not needing a game CD or Xbox $MSFT and just logging on Facebook $FBOOK/Zynga $ZNGA for latest games that portray updated to the moment statistics. For sports games, that would be huge to say the least.
6. Never underestimate the loyalty of the gamer. Again, 260 million subscribers–with mediocre desk jobs–and no life. Boom. You are the king of all you survey.