1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (282) 

Has Zynga Fallen Enough to Warrant a Buy?

July 17, 2014 | About:

Despite the fact that there are unmistakable changes in Zynga's (NASDAQ:ZNGA) business generally, the stock cost doesn't show the same. Zynga's shares have lost 20% in the not so distant past, despite the fact that the company has been making some positive moves. Case in point, its Naturalmotion acquisition has broadened its portfolio, while the company's moves in portable are additionally noteworthy. In this way, is Zynga a decent purchase on the shortcoming? We should figure out.

A key acquisition

Recently, Zynga obtained the gaming company Naturalmotion in an arrangement worth $527 million. Naturalmotion's Euphoria amusement activity motor is required to help Zynga create new amusements, as this is the main path for the company to prosper again and recover its lost position in the web gaming industry. Rapture adds to the company's weapons store, as it has been the developer of triumphs like Grand Theft Auto V and Red Dead Redemption.

In spite of the fact that Zynga's stock is floating close to 52-week lows, the company has hinted at some enormous change under the administration of Don Mattrick. As should be obvious from the outlines underneath, Zynga's DAU, MAU and bookings, which have been reliably going down for a year, demonstrated successive change in the last reported quarter.

Likewise, Zynga is additionally looking to win back investors' certainty by reinforcing its versatile pipeline. Zynga's most recent title, Hit it Rich! is currently accessible on all stages and is relied upon to perform well. Joe Kaminkow, Zynga's boss amusement planner of the title said,

"By mixing the look and feel of true opening machines with notable amusement brands and allowed to-play, social gaming components, Hit it Rich! conveys shoppers a bona fide diversion experience that mirrors the fun individuals have in true gambling joints around the globe."

Zynga is attempting to enhance its end result by moving into the versatile gaming industry with Naturalmotion. Naturalmotion holds a solid position in portable gaming with its dashing recreations, and different amusements, for example, Clumsy Ninja that hit 10 million downloads inside seven days of dispatch. The acquisition of Naturalmotion ought to have a positive effect on Zynga's client base.

Positive advancements

The dispatch of Farmville 2: Country Escape in sixteen separate dialects on Android and Zynga Poker are positives for the company. Farmville 2 offers peculiarities, for example, associated gaming, so that the players can interface the web amusement with their mobiles. It additionally sets out an appealing logged off mode for its players to stay dynamic even without an Internet association.

Overall, Zynga has gotten off to a decent begin in monetary 2014, with the first-quarter results beating experts' assessments. With the dispatch of its main three establishments, specifically Zynga Poker, Words With Friends, and Farmville on portable, the company is heading to a superior performance later on. Additionally, the worldwide workforce decrease project of the company is a key part of its cost diminishment procedure, which will help Zynga get gainful. Zynga is putting forcefully in its promoting procedures and advancement to backing its vision. It plans to create and dispatch more diversions to pull in gamers universally.

With measures, for example, the above, Zynga looks set to prosper in the versatile gaming industry. With overwhelming ventures and the acquisition of Naturalmotion, it is normal that the company will grow its business about whether.


In spite of the fact that Zynga is experiencing extreme times, it can get once again on track. The company is making positive moves and looks set to show signs of improvement going ahead. Thus, investors ought to consider purchasing Zynga on its shortcoming, as it could yet convey long haul development.

Rating: 0.0/5 (0 votes)


Please leave your comment:

GuruFocus has detected 5 Warning Signs with Zynga Inc $ZNGA.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by JuhiKulkarni

User Generated Screeners

NorvasP/S good growers
danaltstreamMPB EY
AxelSalonenGrowth & True Value
gelayor65All Stocks With Blackrock Sell
jgmarisafricaGurus growth low profitability
cspunarMinimum diagonal
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat