Over the last trading session, shares of Zynga Inc. (ZNGA) closed at $6.10 a 4.54% drop from the previous session. That change was worse than the 0.9% change on the S&P 500, and the 0.58% move on the Dow Jones Industrial Average.
However, year over year, the Farmville creator is up 66% from a low of $3.68 in January 2019. That’s more than double the 28% gain on the Consumer Discretionary Selector SPDR Fund (XLY), and the S&P 500 gain of 31% year over year. Wall Street is looking for higher highs on the stock as it nears the release of fourth quarter and full-year 2019 financial results on Wed., February 5, 2020 after the closing bell.
Zynga develops, markets, and operates social games as live services in the United States and internationally. The company’s games are played on mobile platforms, such as Apple iOS and Google’s Android operating systems, as well as on social networking sites, such as Facebook. It also provides advertising services comprising mobile and display ads, engagement ads and offers, and branded virtual items and sponsorships to advertising agencies and brokers; and licenses its own brands.
According to ZNGA’s latest press release, Zynga will post management’s Q4 2019 Quarterly Earnings Letter, which includes Zynga’s fourth quarter and full year 2019 results and outlook for the future, to its website at http://investor.zynga.com. Zynga management will also host a conference call at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on Wednesday, February 5, to discuss the company’s results.
Analysts appear bullish. Zynga “is well-positioned for consolidation in the mobile gaming market,” said Stephens analyst, Jeff Cohen, as quoted by Barron’s.
“We believe the next six to 18 months will be a period of consolidation as established mobile players further leverage their core publishing infrastructure by acquiring sub-scale studios to drive growth. Zynga has a proven ability to successfully execute.”
In recent days, KeyBanc Capital Markets’ analysts Tyler Parker set a price target of $8.50 on the ZNGA stock, and started coverage with an overweight rating.
“On a global basis, mobile is the largest and fastest growing segment of the gaming industry,” Parker says. “Gaming continues to take share of time spent on mobile phones and evolving technology and connectivity is enabling deeper and more quality games that monetize more effectively than ever before.”
Zynga is also “well-positioned to continue building a broad and scaled game portfolio that, when combined with expanding margins and further M&A potential, presents an attractive story going forward,” he continued.
Ian Cooper’s Personal Position in ZNGA: None
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