ZNGA: AN IMPRE$$IVE TURNAROUND STORY, STOCK RIDING HIGH
THE GLOBAL GAMES MARKET WILL REACH $108.9 BILLION IN 2017
90% OF ZYNGA’S AUDIENCE NOW COMES FROM MOBILE AS COMPARED TO 82% A YEAR AGO.
ZYNGA STOCK IS A STRONG GROWTH STORY THAT SHOULD NOT BE MISSED.
ZYNGA AS A COMPANY IS SHOWING ALL SIGNS OF A SOLID TURNAROUND
THE INVESTORS WHO JUMP ONTO THIS BANDWAGON EARLY ARE MOST LIKELY TO REAP HANDSOME RETURNS
ZYNGA IS WELL-PREPARED FOR THIS OPPORTUNITY, NOW MORE THAN EVER.
PROFITCONFIDENTIAL.COM
PUBLISHED: AUGUST 30, 2017
ZYNGA STOCK: THE PENNY STOCK RIDING HIGH ON MOBILE GAMING
BY MUKTA SAMTANI
Credits: iStock.com/scanrail
STRONG TURNAROUND BODES WELL FOR ZNGA STOCK
TODAY’S STOCK REPRESENTS A GREAT WAY TO GAIN ABOVE-AVERAGE RETURNS BY RIDING THE MOBILE GAMING trend. As the use of mobiles for gaming continues to grow, the entertainment industry players shall be one of the biggest gainers of this rising trend. THE INVESTORS WHO JUMP ONTO THIS BANDWAGON EARLY ARE MOST LIKELY TO REAP HANDSOME RETURNS in the coming years.
THERE ARE A FEW GAMING STOCKS THAT ARE NOT ONLY DOING WELL WITH THEIR PORTFOLIO, BUT ARE ALSO REALIZING THE FRUITS OF THEIR TURNAROUND EFFORTS.
THE CASE IN POINT BEING ZYNGA INC (NASDAQ:ZNGA), which is a leading provider of social game services. The company offers live social games on mobile platforms like Apple’s “iOS” and Google’s “Android” as well as on social networking sites such as “Facebook.”
ZYNGA IS AN INNOVATOR OF SOCIAL GAMES AND HAS BEEN SUCCESSFUL IN MAKING “PLAY” A CORE ACTIVITY ON MOBILE DEVICES AND SOCIAL NETWORKING SITES. With a leading portfolio of social games like “Zynga Poker” and “FarmVille” franchises, Zynga has been able to leverage its technology to increase player engagement, launch new games, and build the Zynga brand.
This SUCCESSFUL EXECUTION OF ITS GROWTH STRATEGY HAS BEEN POSITIVE FOR ZYNGA STOCK.
ZYNGA AS A COMPANY IS SHOWING ALL SIGNS OF A SOLID TURNAROUND as it makes the transition to the mobile platform. One of the key highlights of the recent quarter has been the increasing mobile momentum. THE MOBILE AUDIENCE OF THE COMPANY POSTED A GROWTH OF 28% YEAR-OVER-YEAR, TO 19 MILLION AVERAGE DAILY ACTIVE USERS. This is the highest ever year-over-year growth in MORE THAN TWO YEARS. 90% OF ZYNGA’S AUDIENCE NOW COMES FROM MOBILE AS COMPARED TO 82% A YEAR AGO. In the second quarter, the company posted $209.2 million in revenue, up 15% year-over-year. This growth has been driven by record growth of 30% in mobile revenue and 33% in mobile bookings.
As per a recent research report by Newzoo, the global games market will reach $108.9 billion in 2017 as more than two billion gamers around the globe continue to expand the market. Out of this, mobile is the most lucrative segment, with tablet and smartphone gaming expected to grow about 19% year-over-year to about $46.0 billion, which amounts to 42% of the market. The report further says that by 2020, mobile gaming will represent a little more than half of the total games market. (SOURCE: “THE GLOBAL GAMES MARKET WILL REACH $108.9 BILLION IN 2017 WITH MOBILE TAKING 42%,” NEWZOO, APRIL 20, 2017.)
AND ZYNGA IS WELL-PREPARED FOR THIS OPPORTUNITY, NOW MORE THAN EVER. Because apart from the successful franchises, IT HAS BEEN ABLE TO ACHIEVE OPERATIONAL EFFICIENCY AS WELL. THIS HAS LED TO INCREASED OPTIMISM ABOUT THE BUSINESS AND HAS PUSHED ZYNGA STOCK HIGHER. There has been a significant improvement in the year-over-year profitability, revenue, bookings, and cash flow, as is evident from its recent quarterly results.
Although ZNGA stock has been volatile, this penny STOCK HAS GAINED ABOUT 41% IN THE YEAR TO DATE, and as the company continues to sharpen its operating model, ZYNGA STOCK SHALL POST FURTHER GAINS.
Chart courtesy of StockCharts.com
IN THE SECOND HALF OF THE YEAR, THE PRIORITY OF THE SOCIAL GAMES COMPANY CONTINUES TO BE GROWING ITS LIVE SERVICES. ZYNGA HAS A STRONG MOBILE PORTFOLIO, WHICH IS LIKELY TO CONTINUE STRONGER IN THE COMING DAYS. The mobile gaming company has chalked out ITS GROWTH STRATEGY OF INTRODUCING NEW MOBILE TITLES AND HAS MULTIPLE NEW GAMES IN DEVELOPMENT.
ANALYST TAKE: ZYNGA IS AN IMPRESSIVE TURNAROUND STORY AND ZNGA STOCK HAS A LOT OF UPSIDE POTENTIAL. FOR INVESTORS WHO WANT TO GAIN FROM THE RISING MOBILE TREND IN THE ENTERTAINMENT SPACE, ZYNGA STOCK IS A STRONG GROWTH STORY THAT SHOULD NOT BE MISSED.
Source:
www.profitconfidential.com/stock/zynga-stock/zynga-stock-penny-stock-riding-high-mobile-gaming/
