Boston, MA 11/19/2013 (wallstreetpr) – That Zynga Inc (NASDAQ:ZNGA) has dropped 70% from the highs it attained in 2012 when investor appetite soared on the stock can cloud the impressive run and efforts that the gaming company’s management is putting to turn it into a profit machine. ZNGA with market cap at $3.09 billion has doubled in the past 12 months from its lows. This in itself validates the company’s impressive recovery after a serious and painful value bleeding.
It makes good reading that Zynga Inc (NASDAQ:ZNGA)’s new CEO and his management team is making good moves to entrench the company in the mobile gaming business which is considered to be lucrative. Considering the growing uptake of smartphones globally and the viral spread of social media, social gaming companies like ZNGA have their revenue and profits already cut out for them. All that is needed is the strategy to pocket the billion dollars in the industry. Currently, ZNGA is cash endowed and this means that the social gaming company has the financial muscles that it needs to improve its research and development unit so that it can come up with fresh and captivating games which the market would like.
The success of the social networking has general positive impact on Zynga Inc (NASDAQ:ZNGA) in that it has more deals to cut with these companies and thus higher revenue potential. That is why, the IPO of Twitter earlier this month helped boost the stocks position among other online and mobile gaming companies.
Investors should note that when ZNGA reported in October, it topped subdued forecast for the quarter ending Sept. In the reporting, the company announced breaking even in cash flow which is very health for its growth going forward.
That Zynga Inc (NASDAQ:ZNGA) is going places or is poised to go places in terms of revenue and earnings for investors can be seen in the manner that major investors are jostling for a position in its stock. These major investors include Jana Partners and Steadfast Capital which have made significant stake in the company lately.
I think taking position in ZNGA at the earlier opportunity when the stock is still trading around $4 can be a rewarding investment step.