Why are Zynga shares down 9% today?
Dec 06, 2021 · Why Zynga Stock Dropped 18% in November By John Ballard - Dec 6, 2021 at 6:26PM Key Points Zynga delivered a strong third-quarter earnings report last month. The shares were dragged down with the...
What do analysts expect from Zynga stock in Q4 earnings?
Sep 03, 2021 · While those numbers look good, the drop in stock price may have been because Zynga missed the consensus estimate of $716 million for bookings -- which is the primary performance metric the company...
Will Zynga's comeback be short lived?
Aug 06, 2021 · Shares of Zynga (ZNGA-2.88%) plummeted on Friday after the video game developer warned investors that its growth was slowing. As of 3:40 p.m. EDT, Zynga's stock price was down 18%. As of 3:40 p.m ...
Does Joe tenebruso own Zynga?
Nov 04, 2021 · In the latest trading session, Zynga (ZNGA) closed at $7.06, marking a -1.47% move from the previous day. This change lagged the S&P 500's 0.42% gain on the day. Prior to today's trading, shares ...
Zynga saw a big spike in revenue and bookings, but slightly missed estimates
Dave mainly covers financial stocks, primarily banks and asset managers, and investment planning. He's covered mutual funds and institutional investments for Pensions & Investments, personal finance for S&P, and money markets and bonds for Crane Data. Dave has been a Fool since 2014.
What happened
Mobile video game company Zynga ( NASDAQ:ZNGA) saw its stock price plunge 12.4% in August, according to S&P Global Market Intelligence. The maker of Words with Friends and FarmVille trailed the S&P 500, which was up 2.9% in August.
So what
Zynga is one of the premier providers of mobile video games, the kind you play on your phone or tablet. In addition to the above-mentioned games, it also offers Zynga Poker, Toon Blast, Toy Blast, Harry Potter: Puzzles & Spells, Merge Dragons! and Merge Magic! to name a few.
Now what
The miss on bookings is likely caused by there being slightly fewer users than expected due to economies opening back up over the summer and Apple 's recent mobile app privacy changes, explained CEO Frank Gibeau on the second-quarter earnings call.
People are playing games less often as the economy reopens
Joe honed his investing skills as an analyst for Stock Advisor, Supernova, and Fool One. He battle-tested his investment philosophy and strategies as portfolio manager of Tier 1, a market-crushing Motley Fool real-money portfolio that delivered 24.58% annualized returns during its existence.
What happened
Shares of Zynga ( NASDAQ:ZNGA) plummeted on Friday after the video game developer warned investors that its growth was slowing. As of 3:40 p.m. EDT, Zynga's stock price was down 18%.
So what
The owner of games such as Words With Friends and Tangle Master 3D saw its revenue rise 59% year over year to $720 million in the second quarter. The gains were fueled in part by a 110% surge in advertising revenue, to $133 million.
Now what
Investors have grown accustomed to strong bookings and revenue growth for gaming companies during the pandemic. But as vaccinations rise and people spend more time outside their homes, the gaming industry's growth is slowing.
The mobile game maker reported record results but still missed expectations
Evan is a Senior Technology Analyst at The Motley Fool. He was previously a Senior Trading Specialist at Charles Schwab, and worked briefly at Tesla. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.
What happened
Shares of Zynga ( NASDAQ:ZNGA) are getting clobbered today, down by 9% as of 12:45 p.m. EST, after the company reported third-quarter earnings. The COVID-19 pandemic has boosted demand for mobile games and helped drive revenue to record levels but it still fell short of analyst expectations.
So what
Revenue in the third quarter jumped to a record $503 million, but Wall Street was looking for $627 million in sales. That led to a net loss of $122.2 million, or $0.11 per share, compared to the consensus estimate of $0.13 per share in adjusted losses.
Now what
Zynga's outlook also came in a little light. Revenue in the fourth quarter is expected to be $570 million, well below the consensus estimate of $653.1 million in sales. Bookings are forecast at $670 million, which should result in a net loss of $92 million and adjusted EBITDA of $35 million. Analysts are modeling for earnings per share of $0.09.
Fall from Facebook
Zynga, founded in 2007, pioneered social gaming. At the height of its popularity, it comprised nearly a fifth of Facebook’s revenue with more than 300 million monthly active users.
Keeping the momentum on shaky ground
As Zynga’s market cap crossed $13 billion in February, it has seemingly come full circle, and reemerged as one of the largest mobile game companies in the West, next to Playrix, Playtika and Activision. However, as Zynga has previously discovered, the games industry is constantly changing.
