Zynga (ZNGA) just teamed up with Amazon.com to offer promotional content to prime subscribers. In fact, ZNGA just debuted its Words With Friends 2 content for Amazon Prime subscribers earlier this week.
“This is our first deal working with Amazon (AMZN), and it’s similar to a lot of Twitch Prime deals in the market already,” said Zynga publishing president Bernard Kim said, as quoted by Venture Beat. “Starting Monday, AMZN’s Amazon Prime members will receive free mobile game rewards in Words With Friends. It’s going to be promoted through both Amazon Prime and Twitch Prime.”
ZNGA Higher on Video Game Boost in Pandemic
Video games are still thriving in the spotlight, as we noted just last week.
One of the top ones has been Zynga (ZNGA), which ran from a low of $5.80 to $7.50. All on the heels of the coronavirus and a World Health Organization note to play more video games.
“We’re at a crucial moment in defining outcomes of this pandemic. Games industry companies have a global audience – we encourage all to #PlayApartTogether. More physical distancing + other measures will help to flatten the curve + save lives,” tweeted Ray Chambers, U.S. ambassador to WHO. In fact, with millions of us staying at home, it could translate into higher sales for the company.
SunTrust Robinson Humphrey analyst Matthew Thornton is bullish on the stock as well with a price target of $7.50. “The maker of mobile and social games is likely to hold up or perhaps benefit from the coronavirus outbreak,” as quoted by Investor’s Business Daily.
Earnings Will be Released on May 6, 2020
In its previous earnings report, Zynga posted a loss of $3.5 million, or break-even per share, compared with net income of $559,000, or break-even year over year. Analysts were looking for a loss of three cents. Adjusted revenue came in at $433 million, which was better than expectations for $418 million.
“Our momentum in 2019 has positioned us for continued growth in 2020,” he said. “We expect to increase our live services portfolio from five to six forever franchises and have the potential to launch new titles in the second half of this year,” said CEO Frank Gibeau.
As of this writing, Ian Cooper does not have a position in shares of ZNGA.
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