Not much chime to the Zynga Inc (NASDAQ:ZNGA) ring

Posted by Kristi Scott August 30, 2013 0 Comment 5256 views


Zynga Inc (NASDAQ:ZNGA) is a dominant social-game service provider. It is known across the world for games such as CityVille, FarmVille, Zynga Poker, CastleVille, Mafia wars, Safari and the like. These games can be accessed via the official company website, mobile platforms as well as via social networking sites.

Don Mattrick took over as Chief Executive Officer of the company and this shone the spotlight in the company for the past quarter. He launched a revival plan and wants to leverage the amazing market opportunities that have presented themselves with the influx of smartphones and tablets in the market. Mattrick is an experienced hand with a very stable and sound track-record in the gaming and entertainment industry.

The speculative stock

Nevertheless, the company stock is looked upon by analysts as a speculative one rather than a sound investment option. The ZNGA revenue has been on the downtrend since the 2012 Q2. Apart from this it has been facing a major struggle with maintaining profits and holding onto active online users. It also canned its plan of launching real money online gaming in the United States. This was one plan that investors were hoping would set sail as it had very good profit-potential.

The free-loaders

Though most of its online games were stupendous global hits, a major percentage of the online gaming population plays the free version of the games while a minuscule segment consists of premium players. This also means that on the outside what looks like a massive user-base is just that- just a user base. It is not a reflection of its revenue or profit potential.

In Thursday’s trading session Zynga Inc (NASDAQ:ZNGA) stock rose by 1.04%. The opening price of the shares was $2.88% which touched an intraday high of $2.91 which was also the closing price. More than 7.58 million shares were traded in Thursday’s session while the average volume of shares traded over 30 days was 22.71 million. The company has a market cap of 2.34 billion.


About Kristi Scott

Kristi Scott joined GDP Insider in 2005 as a Wall Street reporter for the Business and Market section. Kristi covers the stock market, financial markets and personal finance. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club, the Society of Professional Journalists and Suburban Newspapers of America. Kristi was named SNA's national Journalist of the Year

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