Zynga’s stock (NASDAQ: ZNGA) has gained over 50% of its value since the recent market lows of March 23, primarily because the company is seeing increased demand for gaming in the event of lockdowns and social distancing due to Covid-19.
Why is Zynga's stock down 18%?
Jan 10, 2022 · The mobile gaming publisher's share price is surging following massive acquisition news. What happened Zynga ( ZNGA -0.56% ) stock is soaring today following news that the company is set to be...
Is Zynga’s stock a buy at 4x 2020 revenues?
Aug 06, 2021 · What happened. Shares of Zynga ( ZNGA 0.45% ) 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%.
Is "Zynga Inc-Class A" a good investment?
Jan 11, 2022 · As part of the deal, Zynga shareholders will get $3.50 per share in cash and $6.36 in Take-Two common stock. The key to the acquisition is mobile gaming, which has been Zynga's ( ZNGA ) focus for ...
What happened to Zynga?
Jan 10, 2022 · Zynga Inc ZNGA is trading higher Monday after the company announced it will be acquired by Take-Two Interactive Software Inc TTWO in a cash and stock transaction valued at $9.86 per Zynga share ...
Is Zynga expected to go up?
The 15 analysts offering 12-month price forecasts for Zynga Inc have a median target of 10.00, with a high estimate of 11.00 and a low estimate of 8.20. The median estimate represents a +12.11% increase from the last price of 8.92.
Is Zynga stock a good investment?
Analysts generally believe Zynga is underweight and its stock price target is estimated at a $12.00 value. Its price-to-sales ratio is over 33% lower than it was a year ago, but it's operating cash flow of $161 million last quarter is an 11 percent year-over-year increase.
Why is Zynga a strong buy?
Key Points. Despite headwinds in the ad business, Zynga reported strong earnings results in the third quarter. Advertising bookings nearly doubled year over year. Zynga is building momentum in advertising ahead of several new releases in the pipeline.Nov 16, 2021
Is Zynga stock undervalued?
Barring the pressure on advertising, we expect Zynga to navigate well based on these trends over the latest quarter. Furthermore, our forecast indicates that Zynga's valuation is $14 per share, which is 40% above the current market price of around $10, implying that ZNGA stock is undervalued at its current levels.Dec 8, 2021
Who will buy Zynga?
Take-TwoWhy It's a 'Great Fit. ' Zynga stock soared Monday after Take-Two Interactive announced it would acquire the mobile game developer in a cash-and-stock deal with an enterprise value of $12.Jan 10, 2022
Why is Zynga losing money?
Zynga's stock dropped soon after the report also identified a softening mobile market, user privacy concerns and a loss of players as COVID-19 restrictions ease up. Still, according to CEO Frank Gibeau, the course that brought Zynga back from its death watch is one worth keeping.Aug 11, 2021
People are playing games less often as the economy reopens
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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.
What is Zynga's social game?
Zynga is engaged primarily in developing social games, such as Zynga Poker, CSR, Words With Friends, and Merge Dragons, that use a variety of social platforms to enable gaming interaction, and features the ability to have multiple players engaged at any point in time if needed.
What is the appropriate P/E multiple for Zynga?
Based on trends in the P/E multiple for Zynga as well as its peers Activision Blizzard, and Electronic Arts over the years, we believe that the appropriate P/E multiple to use for Zynga’s stock is 32.0x.
When did Zynga go public?
Zynga ( NASDAQ:ZNGA) came public in a much-hyped IPO at the end of 2011 with its mobile game smash hit Farmville that was played on the Facebook platform. Fast forward to a year later and shares had lost 75% of their value, leaving investors frustrated.
Who owns Facebook shares?
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Brian Feroldi owns shares of Facebook.
Where is Zynga headquartered?
The company was founded in 2007 and is headquartered in San Francisco, California.
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