Boston, MA 06/25/2014 (wallstreetpr) – Zynga Inc (NASDAQ:ZNGA) has been through tough times, but the company appears to be getting back on track and this may be an opportunity for investors seeking to benefit from mobile gaming growth.
Although shares of the company are down nearly 20 percent since the beginning of this year, Zynga has left no doubt about its compelling prospects in mobile gaming, and 1Q2014 financial report was a testament to that fact.
The 1Q reporting saw the company beating Wall Street estimate on the revenue front while meeting earnings expectation. It lost one cent per share in the quarter, same as the consensus expectation. Revenue was $168 million, yet analysts on the average expected $147.52 million for the quarter.
Mobile gaming is one area in which Zynga Inc (NASDAQ:ZNGA) is faithfully investing. The company’s faith in mobile gaming opportunities is demonstrated by the premium acquisition of NaturalMotion, which will help diversify its portfolio in the mobile games niche. In addition to the promising acquisition, the company is also taking its hit franchises mobile, and Words With Friend, FarmVille and Zynga Poker have already been launched on mobile.
In order to support more mobile growth, the company is also developing new titles while aggressively marketing its existing titles to boots mobile penetration.
Workforce and management
Zynga Inc (NASDAQ:ZNGA)’s move to hire Don Mattrick as Chief Executive Officer not only came as a strong indication that the company is serious on achieving a turnaround, but has also started showing good fruits. The company is reducing its global workforce in an effort to contain costs while achieving bottom line support.
The company is clearly off to a good start in 2014 as indicated by the 1Q performance and the concrete investments in marketing, mobile games launches and cost-reduction. Investors can catch Zynga Inc (NASDAQ:ZNGA) on a dip to take advantage of the anticipated growth in the company. By most measures, Zynga is a long-term target for investors.