|Bid||7.31 x 800|
|Ask||7.32 x 900|
|Day's Range||7.19 - 7.69|
|52 Week Range||4.11 - 11.75|
|Beta (5Y Monthly)||0.85|
|PE Ratio (TTM)||122.50|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Video gaming is an enormous business. According to VentureBeat, profits from the industry are expected to reach $180.1 billion in 2021. Not only are the companies behind the popular titles capable of seeing huge profits, but the players, too. While the idea might have seemed far fetched a few years ago, at the top end of professional esports, there are players taking home significant paychecks, both from competitions and from streaming-derived revenue on popular platforms such as Amazon’s Twitch. In addition, advances in technology provide VR and mobile gaming room for significant growth in the new decade.So, with our gaming consoles in hand, we decided to look further down the rabbit hole. Investment firms have been keeping a tab on players in the game, adding companies in the sector to their Millennial Exposure lists. Using TipRanks’ Stock Comparison tool, we decided to see how three gaming companies’ growth stories might play out in the year ahead. Let’s get this game started, then. Activision Blizzard (ATVI)Let’s start off with a gaming giant. American video game holding company Activision Blizzard is the most successful standalone interactive entertainment company in the world. Among its portfolio are some of the most successful franchises in the gaming industry. These include Call of Duty, Overwatch, Candy Crush Saga, World of Warcraft and Guitar Hero, amongst others. ATVI is one of only two gaming related companies to be listed on the S&P 500.Following all-time highs achieved in the fall of 2018, ATVI stock came back down to Earth later that year as the rest of the gaming industry declined. The company recovered and performed well in 2019. Roughly in line with the broader market’s fortunes, the share price exited the year with a 28% gain. As major Activision Blizzard news hogged the headlines last month, the upward trajectory should continue in 2020.So, what happened? In January, the company reported a major transition that involved signing a multi-year partnership with Google. ATVI will use Google Cloud for its hosting infrastructure, and, excluding China, YouTube will become the exclusive streaming outlet for broadcasts of ATVI’s esports competitions.The new deal with YouTube will see ATVI leave Amazon’s Twitch after two years, and while the move appeared to be a curious one at first, once investigated, it makes more sense. Despite Twitch being the dominant player in the video game streaming universe, its growth is slowing down. With 1 billion users and an increase of over 45% in total hours spent watching gaming between the first and fourth quarter last year, YouTube becomes the logical choice. Google’s marketing nous, analytics and infrastructure technology are also reasons for the move.Nomura’s Andrew Marok believes ATVI is “set up well over the medium term.” The analyst said, “The announcement of YouTube as ATVI’s exclusive esports streaming partner registers as perhaps the most significant partnership in an increasingly competitive environment for gaming-focused streaming providers… We think the arrangement provides an interesting opportunity for ATVI; while YouTube is not primarily a gaming service, its broad-based nature and wide audience creates the opportunity for ATVI’s esports leagues to expand their reach into more casual fans that might not otherwise seek out esports content on gaming-specific sites.”Marok, accordingly, reiterated a Buy rating on ATVI along with a price target of $70. The figure implies upward movement of a further 18%. (To watch Marok’s track record, click here)The gaming king gets a thumbs up from the rest of the Street, too. 17 Buys and 1 Hold coalesce into a Strong Buy consensus rating. At the $64.61 average price target, the analysts see room for further growth of 9% in the year ahead. (See Activision Blizzard stock analysis on TipRanks) Electronic Arts (EA)If you were wondering what other gaming company is listed on the S&P 500, then wonder no more. Electronic Arts is the maker of the Battlefield series, EA Sports titles FIFA, Madden NFL and NBA Live, as well as Medal of Honor and Apex Legends, amongst a plethora of others. With a market cap of more than $31 billion, EA is the second largest gaming company in the US and Europe.EA’s performance bested the market in 2019, with the company adding 36% to the share price along. Reporting FQ3 2020 earnings only last week, revenue came in at $1.59 billion, a 23% increase over the same period last year and beating the guidance of $1.51 billion. GAAP EPS of $1.18 easily beat last year’s $0.86 and guidance’s $0.92. Additionally, the all-important figure of net bookings jumped 23% to $1.98 billion.Despite beating estimates across the board, the company’s stock fell by over 3% following the release. The reason? Soft guidance. Investors were disappointed with the Q4 bookings estimate of $1.152 billion, which was below the expected $1.2 billion. For the full year, the company forecasts bookings of $5.15 billion, lower than the consensus estimate’s $5.2 billion.So, should the light guidance figures be a cause for concern? Not at all, argues Oppenheimer’s Andrew Uerkwitz. According to the 5-star analyst, EA’s plan to deliver long-term, stable growth along with games that appeal to a broader range of players with different preferences is a sound strategy.EA’s Q3 beats on EPS and net bookings are reason enough for Uerkwitz to reiterate an Outperform rating on the gaming giant. Moreover, the positive print means the price target gets a bump, too, from $110 to $125. The implication? Possible upside of 17%. (To watch Uerkwitz’s track record, click here)What does the rest of the Street make of EA’s prospects in 2020, then? A Strong Buy consensus rating breaks down into 15 Buys and 5 Holds. Should the average price target of $120.90 be met over the coming months, expect a 13% hike to the share price. (See Electronic Arts stock analysis on TipRanks) Glu Mobile (GLUU)Compared to the two other gaming giants on our list, Glu Mobile has a ways to go. The small-cap, though, is positioning itself in the fastest growing segment of the industry - mobile gaming.A Research and Markets report expects the mobile gaming market (valued at $48.65 billion in 2017) to grow at a CAGR (compound annual growth rate) of 19.6% between 2018 to 2026. As the technology evolves and 5G networks become more widespread, Glu’s sole focus on developing games for smartphones and tablets positions it well for the years ahead.Games currently driving the majority of bookings for the company include Design Home, Covet Fashion and Tap Sports Baseball. Its newly released title, Diner Dash Adventures, is performing well so far, while the company’s ever-expanding portfolio should see three new additions this year: Disney Sorcerer’s Arena, Deer Hunter Next and Originals, a choose-your-own adventure game.KeyBanc's Tyler Parker recently initiated coverage of Glu Mobile with an Overweight rating and $8 price target. The figure conveys his belief Glu can add 28% to its share price over the coming year. (To watch Parker’s track record, click here)Parker believes the game developer is among the companies most poised to benefit from the growing mobile gaming sector. The analyst sees improving profitability for Glu starting in the second half of 2020, with “significant margin expansion” to follow."We believe the mobile gaming market is attractive given the strong growth expected over the next few years, which should benefit scale mobile-first publishers,” he said.The Street agrees. Of the 4 analysts tracked over the last three months, all press the Buy button on Glu. The company’s Strong Buy consensus rating is accompanied by a $7.38 average price target, and indicates 18% upside potential. (See GLUU price targets and analyst ratings on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Nick Earl became the CEO of Glu Mobile Inc. (NASDAQ:GLUU) in 2016. First, this article will compare CEO compensation...
Glu Mobile (GLUU) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
RESEARCH REPORTS These reports, excerpted and edited by Barron’s, were issued recently by investment and research firms. The reports are a sampling of analysts’ thinking; they should not be considered the views or recommendations of Barron’s.
KeyBanc started coverage of two mobile video game publishers with bullish ratings, saying mobile gaming is an attractive market and Glu Mobile Inc . (NASDAQ: GLUU ) and Zynga Inc . (NASDAQ: ZNGA ) are ...
JAKKS Pacific (JAKK) benefits from acquisitions, solid international footprint, focus on innovation and collaborations with popular brands.
We are still in an overall bull market and many stocks that smart money investors were piling into surged through the end of November. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 54% and 51% respectively. Hedge funds' top 3 stock picks returned 41.7% this year and beat […]
By most measures, Zynga (NASDAQ:ZNGA) has an exciting growth narrative. For one thing, Zynga stock is up more than 60% year-to-date, easily outpacing the broader markets. More importantly, shares represent a sharp contrast to rival Glu Mobile (NASDAQ:GLUU), which is down nearly 30% YTD.Source: 360b / Shutterstock.com Not only that, Zynga has the fundamental goods to back up Wall Street's enthusiasm. A few weeks ago, the mobile gaming specialist released its results for the third quarter. Against a consensus target for earnings per share of 5 cents, the company produced an EPS of 24 cents. Not surprisingly, ZNGA stock enjoyed outsized gains following the disclosure.Drilling into the details, one of the most impressive components was the growth picture. ZNGA rang up $345 million, representing a 48% lift from the year-ago quarter's haul of $233.2 million. Although analysts were expecting $386 million, the actual tally beat out the $325 million management had previously forecasted.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd just as critical for the future prospects of Zynga stock were bookings of $395 million. According to Zynga CEO Frank Gibeau, this sets up a very positive demand picture for the coming new year. Moreover, both the quarterly bookings and the revenue haul were company records.Put another way, betting against ZNGA stock appears like a foolish way to lose money. * 10 Cheap Stocks to Buy Under $10 Furthermore, the broader gaming industry is shifting positively for Zynga stock. Smartphone-based games have increased their market share at the expense of traditional gaming platforms. Of course, as digitalization proliferates globally, we can expect mobile games to continue dominating.That said, ZNGA stock has had trouble moving decisively past its highs of earlier this summer. Is this just a blip or a sign to get out? Not All Is Well With Zynga StockWith so many positive factors bolstering ZNGA stock, it's hard to imagine any negatives surrounding the underlying company. And as I mentioned earlier, the gaming industry favors the mobile platform.For instance, when I do some gaming, I prefer consoles, such as Sony's (NYSE:SNE) PlayStation. But no matter how you break it down, a console isn't cheap. Add in the latest games and you're racking up a pretty penny. However, if you have a smartphone, you already have the "console." Thanks to Zynga's easily accessible app platform, you can get up and running in no time.Thus, given that Zynga stock is basically Facebook (NASDAQ:FB) with video games, one should expect continued user growth. However, the latest third-quarter report revealed that is not what's happening. Daily active users measured 20 million, flat against Q3 2018 results. Additionally, monthly active users tallied 67 million, down 14% from the year-ago quarter.To be fair, bookings per DAU increased noticeably to 20 cents from 12 cents. However, ZNGA bases its business model on connecting people globally through video games. Thus, you can't just use bookings per DAU as a detraction against nominally flat DAUs and sinking MAUs.Interestingly, Zynga's partnership with Snap (NYSE:SNAP) may offer some clues. As you know, Snap caters to a younger audience. And video games likewise appeal more toward younger people.According to a Pew Research Center study, 60% of Americans aged 18-29 play video games at least some of the time. Among those aged 30-49, the metric drops to 53%. And once you reach 50 years or above, video-game playing falls off a cliff.In other words, Zynga stock may be at risk of aging out like its partner-in-crime Snap. Go Tactical With ZNGA StockAlso, to be fair, the mobile game industry challenges that I mentioned are not limited to ZNGA. Case in point is Glu Mobile, where its DAUs have declined almost 3% between Q3 2018 and Q3 2019.But the difference is that the markets have already penalized GLUU stock. Therefore, the upside ceiling for GLUU is likely technically higher than it is for ZNGA stock.On the flip side, as a Zynga stakeholder, you're more worried about holding the bag. That concern is especially valid considering that the equity has seemingly encountered tough resistance at around the $6.40 level.In conclusion, I think it's wise to trim some profits off of Zynga stock. Although the company's Q3 results were impressive, the declines in user base is off-putting. Furthermore, it's interesting that despite such great results on paper, ZNGA remains below a clearly defined ceiling.As of this writing, Josh Enomoto is long SNE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Stocks to Buy for the Rest of 2019 * 7 Biotech Stocks to Buy With Plenty of Power in the Pipeline * 5 Stocks to Buy That Are Set for Monster Growth in 2020 The post Download Some Profits From Zynga Stock appeared first on InvestorPlace.
Glu Mobile (GLUU) delivered earnings and revenue surprises of -100.00% and 8.00%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Glu Mobile's (GLUU) third-quarter 2019 results are likely to benefit from strength in growth titles and contributions from recent game launches such as Diner DASH Adventures and WWE Universe.
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you buy shares in a...
Glu Mobile (GLUU) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Hedge funds are not perfect. They have their bad picks just like everyone else. Facebook, a stock hedge funds have loved dearly, lost nearly 40% of its value at one point in 2018. Although hedge funds are not perfect, their consensus picks do deliver solid returns, however. Our data show the top 20 S&P 500 […]
Zynga (NASDAQ:ZNGA) reports its third-quarter earnings Oct. 30 after the closing bell. The San Francisco-based gaming company has staged a comeback in 2019. After years of stagnation, Zynga stock has sprung back to life as first revenues and now profits see massive increases. Although this growth makes a compelling case for the company long term, investors should not hurry to buy ZNGA before the company reports earnings.Source: Sundry Photography / Shutterstock.com For the company's third quarter, Wall Street forecasts earnings of 5 cents per share. If this estimate holds, it will match the profits reported for the same quarter last year. However, for revenues, analysts predict $384.4 million. This would amount to a 54.4% increase from last year when the company brought in $248.9 million.In recent weeks, ZNGA stock has achieved its highest levels since its post-IPO fall. As it spent most of the decade trading in the $2-$3 per share range, many wondered whether it would ever recover.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, with the revenue, and now the profit growth, Zynga stock has proven itself as more than a flash in the pan. With the advent of smartphones and tablets, Zynga took the opportunity to produce compelling games on the platforms to which gamers increasingly turn. Games such as Words With Friends, Farmville and Zynga Poker continue to boost Zynga's profile as well as its stock. * 7 Safe Stocks to Buy and Hold Through 2020 Still, investors need to consider its competition. It has faced challenges in the mobile space from Glu Mobile (NASDAQ:GLUU) and Chinese conglomerate Tencent (OTCMKTS:TCEHY). Also, more established players who have traditionally focused on console-based games have begun to increasingly adopt mobile. As InvestorPlace's Chris Lau reported, Activision Blizzard (NASDAQ:ATVI) has partnered with Tencent on a mobile version of Call of Duty. ZNGA Benefits From Gaming BifurcationHowever, I see gaming as an industry that may drift away from the console as that device becomes increasingly obsolete. Competitive gamers prefer PC-based platforms which offer faster speeds. More casual players have increasingly gravitated to smartphone and tablet-based games. This trend moves in favor of Zynga as many gamers turn to their personal devices.For this reason, I think investors should ask when, not if, they should buy Zynga stock. From a longer-term perspective, the company looks positioned to grow its profits by an average of 18.2% per year over the next five years. Despite this growth rate, ZNGA stock trades at about 22.6 times forward earnings. This is despite a move that has taken Zynga stock higher by over 50% since the beginning of 2019.Investors also have good reasons to not buy before the earnings report. Most of the move higher in Zynga stock took place during the first four months of the year. Since May, ZNGA has traded in a range. Moreover, the company missed earnings estimates on a non-GAAP basis during the second quarter. ZNGA stock still sells at about 5% below the levels it saw before the July earnings report. The Bottom Line on Zynga StockZynga stock looks poised to resume moving higher long term, but investors should hesitate to buy this stock before earnings. Analysts expect no profit growth from the same quarter last year despite a massive revenue increase. Also, ZNGA has not fully recovered from an unusual earnings miss in the third quarter.Admittedly, Zynga could deliver a blowout quarter and spike to multi-year highs. It could also disappoint investors and remain in a range. This makes ZNGA a short-term gamble. However, longer term, the outlook for growth, profits and increasing market share look more favorable. This makes Zynga stock a great buy, at least at the right time.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for Investors Fearing Another Q4 Downturn * 5 Penny Stocks to Buy If You Can Risk It * 7 Safe Stocks to Buy and Hold Through 2020 The post Zynga Stock Is a Buy, But Maybe Not Right Before Earnings appeared first on InvestorPlace.
So far, Glu Mobile shares have risen 8.9% today. Reportedly, the company will replace SolarEdge Technologies in the S&P; SmallCap 600 Index on Friday.
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
Shares of Glu Mobile moved sharply higher Wednesday after a top analyst kicked off coverage of the developer of mobile games for smartphones and tablets with a bullish note. Glu's stock price jumped nearly 5.4% to $5 after D.A. Davidson initiated coverage with a buy rating and an $8 target price. Glu is now ramping up work on dozens of games as it hunts for a mega hit, with the firm's "growth story" in its "early innings," analysts at D.A. Davidson wrote.