'Candy Crush Saga' Maker Files for IPO, But Investors May Not See Sweetness

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While Zynga's user base at the time of its IPO was great, King Digital's is unbelievable, Smith said. Zynga had about 54 million daily average users at the time of its IPO compared with King's 128 million.

In King's F-1 IPO filing, the company says its profit was $567.6 million last year, compared with $7.8 million in 2012. The company had $1.9 billion in sales last year, versus $164 million in 2012.

The next step will be to see how King prices its IPO before it officially goes public. Zynga priced its IPO at $10 a share and the stock fell 5 percent on its first day. Shares are now trading at around $5 and its revenue has faltered.

Zynga has seen growth in its "Words With Friends" game, which was acquired, and its Casino franchise that includes Zynga Poker, CEO Don Mattrick said in a conference call on Jan. 30 discussing fourth quarter results.

While King Digital's revenue figures are astounding, Smith said the company and investors will need to proceed with care.

"In its extreme, this is like looking at a cyclical company," she said. "You want to be careful of looking just at the top of the cycle. Don't value the company by its latest and greatest game."

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