I don't entirely disagree with your sentiment, but I think there is a fair distance between Zynga and its ilk and the unregulated penny stocks. Zynga has had trouble demonstrating much of a profitable plan, but every investment bears risk and I don't think investors should enter the market if they don't feel comfortable with the risk level. I avoided Zynga partially because I avoid tech debuts for the reasons you cite, but more importantly because I didn't trust the model. That said, I've been wrong on the market more than right.