Over the last trading session, shares of Zynga Inc. (ZNGA) closed at $6.27, a 0.8% move over the previous session. That change outpaced the 0.71% change on the S&P 500, and the 0.36% move on the Dow Jones Industrial Average.
As of today, the Farmville creator is up 70% from a low of $3.68 in January 2019. That’s more than double the 29% gain on the Consumer Discretionary Selector SPDR Fund (XLY), and the S&P 500 gain of 27% for the year to date. Wall Street is looking for ZNGA to display further strength as it nears its next earnings report in January 2020.
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.
Over the last year, shares of ZNGA have run from a low of $3.50 to a current price of $6.27.
Wall Street firms have also rated the stock as a top pick. In fact, analysts at Stephens recently called this mobile gaming their “best idea,” noting they expect the company to bolster growth through further acquisition.
Zynga “is well-positioned for consolidation in the mobile gaming market,” they said, 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 its most recent quarter, the company saw revenue of $345 million, up 48% year over year, with bookings up 59% to $395 million. Mobile revenue soared to $328 million, up 54% year over year with mobile bookings up 64% to $378 million.
Zynga also raised its full-year guidance to $1.28 billion in revenue, an increase of $42 million from prior guidance. The company also raised its booking guidance by 59% to $1.55 billion, which is an increase of $46 million over prior guidance.
“In Q3, we achieved our best quarterly revenue and bookings in Zynga history. Our performance was driven by strong momentum across our live services, in particular record quarters from Empires & Puzzles and Merge Dragons!. Also, our recently launched titles, Game of Thrones® Slots Casino and Merge Magic!, are off to great starts. With our raised guidance, Zynga is one of the fastest growing public gaming companies in 2019,” said Frank Gibeau, Chief Executive Officer of Zynga.
5G, Streaming TV, Internet-of-things, Artificial Intelligence, Automation will skyrocket once we're beyond this pandemic and economies around the world begin to recover. Here are 10 must-own the stocks to buy now before the real recovery starts.
Pandemic, stock market crash, economic recession, social unrest, geopolitical confrontation... 2020 will go down in history as a year of upheaval.
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