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Is Zynga Inc. (ZNGA) Still A Good Stock To Buy?

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Jose Karlo Mari Tottoc
·3 min read
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Artisan Global Discovery Fund, a global investment management firm, published its third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A positive return of 11.79% was recorded by the fund for the 3rd Quarter of 2020, ahead of its MSCI All Country World benchmark that returned 8.13%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Artisan Partners talked about Zynga Inc. (NASDAQ: ZNGA) in their Q3 2020 Investor Letter. Zynga Inc. is a social game developer that currently has a $10.434 billion market cap. For the past 3 months, ZNGA delivered a 5.57% return and settled at $9.67 per share at the closing of January 15th.

Here is what Artisan Global Discovery Fund has to say about Zynga Inc. in their Investor Letter:

"Our multiyear investment campaign in Zynga has been based on a new management team’s ability to drive steady growth in the company’s base portfolio of games, expand margins, reinvigorate the new game development pipeline and use its strong balance sheet to acquire complementary games and studios. These were all on display in Q2 results as the stay-at-home tailwind drove elevated levels of user engagement. That said, the stock has pulled back recently, presumably because of concerns that Apple’s pending new privacy policy will make it more difficult for Zynga to both efficiently acquire new players and sell advertising in its games. Our research suggests these headwinds are manageable for larger mobile game developers such as Zynga, and based on our confidence in the durability of the company’s profit cycle, we have maintained our position."

wii, gaming, game, video, fit, display, internet, play,
wii, gaming, game, video, fit, display, internet, play,

Barone Firenze / Shutterstock.com

Last December 2020, we published an article telling that Zynga Inc. (NASDAQ: ZNGA) was in 48 hedge funds’ portfolio. Its all time high statistics is 59. Zynga Inc. proved its worth by delivering a 44.98% return for the past 12 months.

As of September 2020, Artisan Partners had a 70 million share position in ZNGA that amounted to $639 million. However, our calculations showed that Zynga Inc. (NASDAQ: ZNGA) does not belong to the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website.

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Disclosure: None. This article is originally published at Insider Monkey.