ZNGA: ZYNGA,FINALLY,A,MOBILE,WINNER,GAME,HIT,TOP,DOWNLOAD,SPOT,NEARLY,100,INTERNATIONAL,LOCATIONS
"NOW ZYNGA HAS A TOP 10 MOBILE GAME"
RELEASED CSR RACING 2 TO HUGE SUCCESS.
THE GAME HIT THE TOP DOWNLOAD SPOT FOR GAMES ON THE IPHONE IN NEARLY 100 INTERNATIONAL LOCATIONS.
"A BRILLIANT MOVE"
THE STOCK WOULD BE HIGHER, IF INVESTORS VIEWED THE COMPANY BASED ON THE GROWTH IN MOBILE REVENUES,
ZYNGA: FINALLY A MOBILE WINNER
JUL. 8.16 | ABOUT: ZYNGA (ZNGA)
STONE FOX CAPITAL
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SUMMARY
THE RECENT SUCCESS OF A MOBILE GAME USHERS IN A NEW ERA FOR ZYNGA.
A BIG MOBILE HIT WILL CHANGE THE MARKET PERCEPTION OF THE GAME DEVELOPER.
The stock still offers A VERY COMPELLING VALUATION despite TRADING AT THE 52-WEEK HIGH.
The biggest rap of Zynga (NASDAQ:ZNGA) since the peak of the Facebook (NASDAQ:FB) gaming platform was the lack of a solid mobile lineup. The game developer hired Don Mattrick to usher in the shift to mobile, but the company struggled to make the shift fast enough.
NOW ZYNGA HAS A TOP 10 MOBILE GAME that ironically comes from a purchase made by Mattrick over 2 years ago. The question now is whether the company has finally figured out the mobile world to finally reward shareholders.
SHIFT TO MOBILE
The biggest issue with Zynga is that IF INVESTORS VIEWED THE COMPANY BASED ON THE GROWTH IN MOBILE REVENUES, THE STOCK WOULD BE HIGHER. The company produced $139 MILLION IN MOBILE BOOKINGS DURING Q1 FOR A 31% GROWTH RATE.
The company made progress in moving Facebook platform games like the Farmville and Zynga Poker franchises to mobile, but the games struggled to offset the losses from the online platforms. The gains actually came from the Casino category. The category though lacked any big winners.
Now the irony is that THE BIG $527 MILLION PURCHASE by Mattrick TO GRAB THE ANIMATION TALENT OF NATURALMOTION might turn out AS A BRILLIANT MOVE. The company had released the very successful CSR Racing and other top games like Clumsy Ninja. Unfortunately though, NaturalMotion has struggled to release a couple of highly anticipated games.
ON JUNE 30, THE COMPANY FINALLY RELEASED CSR RACING 2 TO HUGE SUCCESS. ACCORDING TO APP ANNIE, THE GAME HIT THE TOP DOWNLOAD SPOT FOR GAMES ON THE IPHONE IN NEARLY 100 INTERNATIONAL LOCATIONS.
Source:
seekingalpha.com/article/3987181-zynga-finally-mobile-winner
