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Daily Alert - 5/19/20

This gaming company beat analysts’ estimates by $0.02 last quarter.

This gaming company beat analysts’ estimates by $0.02 last quarter. It is expected to grow by more than 18% this year.

Zynga Inc. (ZNGA)
From The Cheap Investor

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Zynga Inc. develops, markets, and operates social games as live services in the United States and internationally. The company’s games are played on mobile platforms, such as Apple iOS and Google’s Android operating systems, as well as on social networking sites, such as Facebook. It also provides advertising services comprising mobile and display ads, engagement ads and offers, and branded virtual items and sponsorships to advertising agencies and brokers, and licenses its own brands.

As analysts at Stephens recently noted, Zynga “is well-positioned for consolidation in the mobile gaming market,” as quoted by Barron’s. “We believe the next six to 18 months will be a period of consolidation as established mobile players further leverage their core publishing infrastructure by acquiring sub-scale studios to drive growth. Zynga has a proven ability to successfully execute.”

Better, it’s getting a boost from the World Health Organization’s note to play more video games. “We’re at a crucial moment in defining outcomes of this pandemic. Games industry companies have a global audience—we encourage all to #PlayApartTogether. More physical distancing plus other measures will help to flatten the curve plus save lives,” tweeted Ray Chambers, U.S. ambassador to WHO.

SunTrust Robinson Humphrey analyst Matthew Thornton is bullish on the stock as well, with a price target of $7.50. “The maker of mobile and social games is likely to hold up or perhaps benefit from the coronavirus outbreak,” as quoted by Investor’s Business Daily.

Ian Cooper, The Cheap Investor,, May 2020