Zynga Inc (ZNGA)

[Trevor11]

ZNGA: ZYNGA INC. IS THE TOAST OF WALL STREET!











SMASHING THE CONSENSUS...


ZYNGA DELIVERED...BEATING ANALYST ESTIMATES


ZYNGA REMAINS A CHEAP STOCK


...AFTER 41.25% GAIN IN 2017


WHEN YOU CONSIDER HOW MANY SHARES ARE SHORTED VERSUS THE AVERAGE DAILY VOLUME, MEANS
HOW MANY DAYS TO COVER THOSE SHORT SHARES


15 DAYS TO COVER









HOW ZYNGA INC. GAINED 21.8% IN MAY



THE MOBILE VIDEO GAME SPECIALIST IS TURNING THE CORNER AFTER A FEW BLEAK YEARS, THANKS TO TIGHT COST CONTROLS RATHER THAN HUGELY SUCCESSFUL NEW LAUNCHES.

ANDERS BYLUND
(TMFZAHRIM)

JUN 2, 2017 AT 5:31PM

What happened
Shares of online video game maker Zynga (NASDAQ:ZNGA) rose 21.8% in May 2017, according to data from S&P Global Market Intelligence.

So what
ZYNGA DELIVERED a solid first-quarter earnings report right at the start of May, BEATING ANALYST ESTIMATES with a net loss of $0.01 per share on sales of $194 million. The maker of popular game titles such as Farmville and Words With Friends followed up with better-than-expected guidance for the next quarter, as rapid growth of Zynga Poker revenues is making up for lower advertising sales.

Image source: Getty Images.
Now what
The company is doubling down on online multiplayer games and other real-time services, which also helps Zynga control its operating costs -- developing new titles can be expensive, compared to simply PUSHING HARDER TO PROMOTE THE EXISTING CATALOG.
Piper Jaffray analyst Mike Olson upgraded Zynga to a buy near the end of May, noting that MOST OF THE COMPANY'S CURRENT MANAGEMENT TEAM CAME IN WITH TURNAROUND EXPERIENCE FROM THEIR DAYS AT ELECTRONIC ARTS (NASDAQ:EA). THEY ARE USING SIMILAR BUSINESS-IMPROVEMENT TACTICS FOR ZYNGA RIGHT NOW, and you could certainly find worse role models to emulate:

EA data by YCharts.
ZYNGA INVESTORS have not needed a poker face in 2017, KEEPING PACE WITH EA'S 44% YEAR-TO-DATE GAINS. And it's starting to look like the good luck is here to stay. One of these days, Zynga might even start turning a sustainable profit.
Anders Bylund has no position in any stocks mentioned. The Motley Fool recommends Electronic Arts. The Motley Fool has a disclosure policy.

Source:
https://www.fool.com/investing/2017/06/02/how-zynga-inc-gained-218-in-may.aspx






MARKETS
ZYNGA INC. (ZNGA) SHARE PRICE COULD BE RISING AFTER 41.25% GAIN IN 2017

1 MIN AGO

BY ROSEMARY BECKER

Zynga Inc. (ZNGA) shares saw a recent bid of $3.63 and 17.04M shares have exchanged hands in the recent trading session, yielding a 4.01% gain over the past week. The stock price increased 1.40% or $-0.05 versus $3.58 at the end of the prior session. This change led market cap to move at $3.08B, putting the price -0.55% below the 52-week high and 59.91% above the 52-week low. The company’s stock has a normal trading capacity of 10.03M shares while the relative volume is 1.70.
To stay one step ahead we extended our research by comparing different price targets. The stock notched a 12-month high of $3.61 while $5.00 target is by far the most aggressive out of analysts who are currently evaluating the company, $1.39 higher than the next highest 52-week price estimate. The lowest 12-month price target for the shares is $3.00, which would be decrease of about -17% of its current value. The mean target of $3.43 should be compared with the price when the stock was languishing around $2.27 a share. And it remains to be seen which target price ZNGA can achieve without sacrificing much as the company is holding a 38.55% gain for the past twelve months.

BY HISTORICAL STANDARDS, ZYNGA INC. REMAINS A CHEAP STOCK. The company’s current price-earnings ratio amounts above the average P/E ratio of 37.10 times earnings. For now, ZYNGA INC. IS THE TOAST OF WALL STREET as its ABR stands at 2.50 with 4 out of 16 analysts rating the stock a buy. Over the short term, some market observers may have noticed that Zynga Inc. has a 2.55% short float with 15 DAYS TO COVER. It becomes significant WHEN YOU CONSIDER HOW MANY SHARES ARE SHORTED VERSUS THE AVERAGE DAILY VOLUME, MEANS HOW MANY DAYS TO COVER THOSE SHORT SHARES AT THAT VOLUME. ZYNGA INC. HAS FAR PERFORMED WELL THIS YEAR, WITH THE SHARE PRICE UP 41.25% SINCE JANUARY. Over the past 2 quarters, the stock is up 26.92%, compared with a gain of nearly 30.58% for 3 months and about 25.17% for the past 30 days.

LAST TIME, THE COMPANY SHOCKED WALL STREET BY REPORTING EPS OF $0.02, SMASHING THE CONSENSUS OF $0.01 PER SHARE. REVENUE FOR THE QUARTER ALSO KILLED CONSENSUS, COMING IN AT $207.36M, COMPARED TO THE CONSENSUS OF 191.41M. Nonetheless, from here on out, earnings per share forecasts for the current quarter are $0.02. The company is expected to report EPS as high as $0.03 and as low as $0.01 per share. Similarly, full-year EPS forecasts have ranged between $0.06 and $0.13. The mean EPS estimate is $0.09. On the other side, sales forecasts for the current quarter are $206.37M. The stock is expected to report revenue as high as $210M and as low as $204.18M per share. SIMILARLY, FULL-YEAR SALES FORECASTS HAVE RANGED BETWEEN $832.01M AND $875.82M. THE MEAN REVENUE ESTIMATE IS $844.38M.

Over the last 5 years, Zynga Inc. has averaged a 26.60% YoY EPS growth rate and a -8.20% revenue growth rate. Analysts are expecting EPS growth rates to be at 7.50% this quarter and EPS estimate for next year reflect 24.42% growth rate.
SELL-SIDE ANALYSTS ALSO HAVE SOMETHING TO SAY ABOUT THIS COMPANY. PIPER JAFFRAY RAISED ITS RATING ON ZYNGA INC. TO OVERWEIGHT ON 30/05/2017 in a reversal from its prior Neutral rating. BofA/Merrill raised its rating on Zynga Inc. to Neutral on 05/05/2017 in a reversal from its prior Underperform rating. Mizuho analysts stated on 23/12/2016 that they launched coverage on this stock with Buy rating.

Zynga Inc. (ZNGA) Share Price Could Be Rising After 41.25% gain In 2017 was last modified: June 5th, 2017 by Rosemary Becker
Tags: NASDAQ:ZNGA, ZNGA, Zynga Inc.


Source:
https://stocknewsmagazine.com/2017/06/05/zynga-inc-znga-share-price-could-be-rising-after-41-25-gain-in-2017/