Earnings Preview: Can Facebook and Zynga Stop the Bleeding?

ZNGA Revenue Growth data by YCharts

If Zynga blows the number away and puts 10 cents up on the board, the stock can easily double from here. Zynga will need to follow up with impressive guidance, but I have witnessed bigger surprises in my career. I don't believe the odds favor it, but it's a thought in the back of the minds of every short-seller right now.

Technically the chart pattern is bearish (not hard to figure out when the price moves from the top left to the bottom right), but also nearing an oversold status as shares move towards $4. A strong down day with heavy volume may signal a bottom.

Unless you're a short-term trader it doesn't mean much. Investors will want to focus on fundamentals and the earnings performance. Without a significant beat, don't look for this dog to hunt anytime soon.

At the time of publication the author did not hold a position in any stock mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.