|Bid||6.67 x 38500|
|Ask||6.69 x 41800|
|Day's Range||6.63 - 6.84|
|52 Week Range||4.21 - 6.92|
|Beta (5Y Monthly)||0.28|
|PE Ratio (TTM)||133.40|
|Earnings Date||Feb 03, 2020 - Feb 09, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||7.50|
The video game industry is involved in the development, marketing and sale of hardware and software, fueled by advances in technology, high-speed connectivity, and customized gadgets. Some of the top companies in the industry today include Sony Corp.
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 ...
(Bloomberg) -- The electronic sports industry is likely to grow significantly in coming years and stocks in the sector are poised to benefit, according to DBS Group Holdings Ltd.E-sports, or multiplayer video games played competitively by professional gamers, is a key investment theme in the Singapore-based bank’s quarterly CIO outlook as the phenomenon gains traction among increasingly wealthy millennials and their Generation Z counterparts. Live streaming will help lead to “exponential growth,” with companies such as Activision Blizzard Inc., Nintendo Co. and Tencent Holdings Ltd. set to benefit, according to Thursday’s report.“E-sports is expected to undergo phenomenal growth in the coming years - from both a viewership and monetization standpoint,” the report said. “Game developers are predominantly the biggest beneficiaries given that they are involved in almost every facet of e-Sports – from games publishing to the creation of leagues and the hosting of tournaments.”Streaming platforms and hardware manufacturers will also benefit, it said.Read: Even Small Esports Names Gain as Industry Matures, Stephens SaysExposure to the field has already been paying off for investors. The MVIS Global Video Gaming and eSports Index is up 47% since the end of 2018, compared with the S&P 500’s 31% advance. The gauge of 25 companies which includes NetEase Inc., Zynga Inc., Take-Two Interactive Software Inc. and Electronic Arts Inc., has risen 3.4% this year versus a 1.4% gain in the broader benchmark.(Adds story link after fourth paragraph.)To contact the reporter on this story: Joanna Ossinger in Singapore at email@example.comTo contact the editors responsible for this story: Christopher Anstey at firstname.lastname@example.org, Cormac Mullen, Naoto HosodaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of Zynga climbed 2.9% to $6.45 Tuesday after an analyst with SunTrust initiated coverage of shares of the gaming company with a buy rating and a $7.50 share price target. "In addition to a healthy existing portfolio, ZNGA has a strong pipeline (at least 7 games, including FarmVille, Harry Potter, Star Wars, Game of Thrones, and others) as well as a strong balance sheet ( $1.4b in cash) and acquisition track record (Small Giant, Gram Games) to augment organic growth with M&A in what is a highly fragmented market," Thornton said. Nearly 100% of Zynga's pro forma growth in the third quarter came from titles that were acquired under the current leadership team during the past two years, Thornton said, adding he believes mergers and acquisitions are one of Zynga's core competencies.
The 20th century’s third decade came to be known as the roaring 20s. It was a period characterized by economic prosperity and cultural activity that saw massive development in movies, radio, cars, telephones, and electrical appliances.Will the 2020s have a similar impact? The decade follows a record breaking 10 years in the market, with accelerating new tech developments and our lives connected by the world wide web. In a recent note to clients, Baird analyst Colin Sebastian lays out some thoughts on the incoming decade and the role the internet will play in it. Additionally, the analyst makes the case for the company’s top internet picks for the year ahead.Sebastian said, “After a bustling decade highlighted by mobile apps, cloud computing and AI/machine learning, the Internet sector remains, in our view, an attractive area of investment. We see a bounty of meaningful technology transitions on the horizon - some more disruptive than others - creating new opportunities and risks, but presumably leading to faster and more useful applications that are accessible to a greater number of people.”With this in mind, we used TipRanks’ Stock Comparison tool to line up the 5-star analyst’s two picks alongside each other to see what the early 2020s have in store for both. Let’s browse the details.Amazon.com Inc. (AMZN)As everyone knows, what begun as an online bookstore is now one of the world’s biggest companies. According to Sebastian, one of the reasons Amazon remains so appealing is its status as an all-encompassing platform, highlighting Amazon’s “widening scope of operations and expanding market opportunities.” Apart from e-commerce, Amazon has a foothold in cloud computing, logistics, advertising, and streaming.While Amazon’s online shopping store is the segment it is still most identified with, and one set to provide further growth, other parts of the operation are not lagging behind; Having done away with external logistics companies to take care of deliveries, Amazon is on its way to becoming one of the largest logistics and transportation companies in the US. Furthermore, Amazon’s advertising revenue is estimated to reach $17.6 billion in 2020, which will represent growth of 36% year-over-year. This figure could rise to $46 billion by 2025, according to the estimates.What could drive Amazon’s long-term growth more than anything, though, is its cloud computing segment. Despite AWS sales only accounting for $25.1 billion of the $193.1 billion in net sales through the first three quarters of 2019, the service is growing much faster than its e-commerce counterpart and is already generating more operating income. Compared to the prior-year period, in the first nine months of 2019, AWS has grown by 38%.While 2020 will see more regulatory concerns regarding big tech companies, Sebastian plays down their impact and thinks the "bark" is probably bigger than the "bite". The analyst cites “slowing innovation” and “management distraction” as bigger risks.Sebastian concludes, “We highlight AMZN given ongoing secular e-commerce strength; relative underperformance of shares vs. mega-cap peers; improving margin optics beginning in Q2/2H; and significant growth opportunities in commerce, shipping/ logistics, advertising, cloud, payments, and international.”It’s not surprising to learn, then, that Sebastian reiterated an Outperform rating on Amazon, along with a price target of $2,080. This conveys the 5-star analyst’s belief that Amazon can add an extra 11% to its share price over the next year. (To watch Sebastian’s track record, click here)As it happens, the Street is even more bullish than the Baird analyst. A Strong Buy consensus rating breaks down into 39 Buys and a single Hold. With an average price target of $2,149.94, the Street sees another 15% being added to the e-commerce giant’s share price in the next 12 months. (See Amazon stock analysis on TipRanks)Zynga (ZNGA)Sebastian’s other Top Pick is social game developer, Zynga. Zynga’s most famous game is Farmville, which was the first game on Facebook to reach 10 million daily active users. Other titles include Zynga Poker and Words with Friends.Sebastian said, “Mostly, we like Zynga for the visibility from live services, new title launches, potential for more M&A, and 2H improvement in EBITDA margins. Also, we note console transition-year volatility is a bigger near-term risk for traditional game publishers.”The 5-star analyst kept his Outperform rating on Zynga, alongside a price target of $8. Investors stand to take home a 28% gain should Sebastian’s thesis play out.Zynga IPO’d in 2011 and since then, its share price hasn’t been as high as during its first few months as a public company. 2019, though, saw it trading back at levels not seen since 2012. Zynga outperformed the market last year, gaining 56%, as well as posted encouraging figures in its latest earnings report; 3Q19 represented the best quarterly revenue and bookings in its history. This prompted the company to boost its revenue and bookings guidance for all of 2019 for the second time in a year. The growth comes off the back of some big acquisitions; Zynga bought Gram Games for $250 million in 2018 and followed that up with the $560 million purchase of an 80% stake in Small Giant Games. The former is the creator of the popular Merge Dragons, while the latter counts Empires & Puzzles among its titles.Cowen’s Doug Creutz is a fellow fan of Zynga. The 5-star analyst also named Zynga as a ‘’best idea for 2020’’ and called it "the most consistent company in the mobile gaming vertical over the last few years." Creutz, too, reiterated an Outperform rating on the game developer, and kept his $7 price target. (To watch Creutz’s track record, click here)So, what does the rest of the Street think of the analysts’ top pick for 2020? Zynga has a Moderate Buy rating, which breaks down into 3 Buys, 2 Holds, and 1 Sell. An average price target of $7.03 indicates possible upside of 15%. (See Zynga price targets and analyst ratings on TipRanks)
Not all technology stocks beat the market last year. To take a look, we asked two veteran internet analysts—Mark Mahaney of RBC Capital Markets and Colin Sebastian of Baird—for their top picks for 2020. Mahaney believes that the internet stocks’ relative underperformance sets up the sector for strong multiyear returns.
(Bloomberg) -- Frank Gibeau had only just become Zynga Inc.’s CEO, but he had to deliver some bad news.The once-high-flying company, which shot to fame with Facebook games such as FarmVille, was now in trouble. At an all-hands meeting in Zynga’s cafeteria in March 2016, Gibeau put up a slide showing its return on equity compared with video-game peers. The room was very quiet.“I showed them that we are the worst of the worst,” he recalled in an interview. “We are generating less return than everybody else in the industry.”Fast-forward three years, and the mood is very different. The company increased its guidance three times last year. Profit margins have rebounded, and sales are growing at their fastest pace since the game developer went public in 2011. Zynga is “on track to be one of the fastest-growing -- if not the fastest-growing -- gaming company at scale,” Gibeau said.Zynga shares have nearly tripled to $6.15 since Gibeau, now 51, took over as chief executive officer. That includes a 56% gain in 2019, eclipsing the S&P 500’s 29% increase.The stock is still far below its post-IPO high set in 2012, when the exuberance around social media propelled Zynga to almost $16. But shareholders and Wall Street analysts are embracing the company again.“Investors like a good turnaround story,” said Colin Sebastian, an analyst at Robert W. Baird & Co.Along the way, Gibeau reinvented what Zynga is about. It now makes only a sliver of its money from Facebook-based games, which gave the company a reputation for delivering endless requests and notifications to social-media users.Instead, Zynga focuses on stand-alone titles that consumers play on their phones. They include Words With Friends, Zynga Poker, and Merge Dragons!, which lets players combine dragon eggs and treasures to produce skills and objects.Zynga also has used acquisitions to dial up growth. In 2018, it agreed to buy controlling stakes in Small Giant Games for about $560 million and Gram Games for $250 million. And it has a war chest of cash and short-term investments that’s approaching $1.5 billion, which could be used for additional deals. To raise money, Zynga has sold bonds and made more than $300 million from unloading its San Francisco headquarters in a leaseback deal last year.Spending SpreeThe idea is to create a mini-empire of game studios and franchises, said Gibeau, a veteran of Electronic Arts Inc.“We see a lot of opportunities to acquire assets that would grow value for shareholders,” he said. “We want to put those dollars to use.”Zynga is preparing to reinvent itself again by embracing new platforms and devices -- no matter what they may end up being.“Ten years from now, I know for a fact that the platforms will be different,” he said. “There could be other platforms -- like streaming platforms, cloud-based gaming.”The video-game consoles that dominated the industry for so long may not exist in a decade, opening the door to other options, Gibeau said. “I want our games to be playable on anything, even if it’s a toaster or refrigerator.”Zynga has already jumped onto Snapchat. And while it hasn’t provided details on what else is in the works, the company is developing a new multiplatform strategy.“We have a saying, ‘Make platform transition your friend,’” Gibeau said. “You can turn yourself out of position, which frankly Zynga did by being so focused on Facebook.”When Zynga struggled to pull out of its slump, co-founder Mark Pincus recruited Gibeau out of retirement. Though Gibeau was only in his 40s, he’d already spent 25 years at Electronic Arts and helped turn that company around.“I really wasn’t looking for a job,” Gibeau said. “I was getting in shape. I was flying airplanes. I was looking to apply for a master’s program in history. I was spending time with my kids, traveling.”But Bing Gordon, a fellow Electronic Arts veteran who served on Zynga’s board, approached Gibeau for help on behalf of Pincus. A 30-minute chat over coffee with Pincus turned into a three-hour meeting, and Gibeau soon joined Zynga’s board. He found himself visiting the company once a week, then everyday, and he was asked to become CEO.“I just fell in love with the place -- I love turnarounds,” Gibeau said. “I learned a lot from the failures at EA. I looked at it and thought, ‘Man, this is perfect.’ I knew exactly what to do here.”The biggest task was focusing. Under Gibeau’s new management team, Zynga went from working on about 140 projects to a dozen games.The company concentrated on so-called live services -- basically, providing new content for existing games on an ongoing basis -- and tried to make its games more complex and engaging. It also invested in titles tied to movie franchises, such as Harry Potter and Star Wars. And Zynga expanded into Asia and other markets.‘Firm Footing’“The company has significant live-services expertise and has a strong advertising platform, so it can help rapidly scale promising games as they come to market,” said Matthew Kanterman, an analyst at Bloomberg Intelligence. “All in, Zynga is on firm footing for the next few years.”Zynga’s comeback is far from complete. Its profit margins still trail those of peers, and its ability to catch up will depend on the games it releases in 2020 and beyond.But the company has a happier workforce -- and takeover targets actually want to be acquired by Zynga. That wasn’t the case a few years ago, said Mike Hickey, an analyst at Benchmark Co.“Frank and his management just reset the culture and what the market perceives Zynga to be,” he said. “You stop worrying about losing your job and start getting excited about the bonus you make because you’ve hit your goals. That’s the biggest step in a turnaround.”To contact the reporter on this story: Olga Kharif in Portland at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, Rob Golum, John J. Edwards IIIFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
U.S. stocks are not slowing down as 2020 nears. All three broad market indices once again reached new highs on Thursday. The S&P 500 has gained more than 29% so far this year. The NASDAQ Composite cleared 9,000 for the first time on Thursday.Source: Shutterstock With the geopolitical situation calm and impeachment apparently stalled out, there's seemingly little resistance ahead at the moment. That's not the case, however, for Friday's big stock charts. * 7 Stocks to Buy to Get 2020 Started the Right Way In fact, resistance is the theme of these big stock charts. One of these names already has faltered and is trying to rebound. The other two are looking to re-take past highs. But the common thread is that all three of these stocks are looking for a breakout in the midst of a broad market that continues to rise.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Wynn Resorts (WYNN)Source: Provided by Finviz When we called out Wynn Resorts (NASDAQ:WYNN) in 3 Big Stock Charts at the beginning of November, the stock looked set to stall out. That turned out to be the case, as shares sputtered for several weeks. But two pieces of positive news have changed the outlook -- and the WYNN stock chart: * Wynn shares first jumped on Dec. 12, as China announced plans to make Macau a key financial center. WYNN stock gained 9.5% on that news, as investors saw the news as driving demand for Wynn properties in that Chinese enclave. Six days later, the central government delivered more good news, increasing the daily limit on remittances from the mainland, and WYNN again gapped up. * On their own, neither of those developments seem to move the needle. But they add to the sense that Chinese leaders see Macau in an increasingly positive light amid protests in Hong Kong. Central government policies have impacted gaming revenue and stocks of casino operators in the region; anti-corruption measures interrupted growth earlier this decade, and WYNN still trades 40% below early 2014 highs. * The twin jumps allowed WYNN to break out of a usually bearish descending triangle. Moving averages have been easily cleared. And volume has been relatively solid during this rally. The question now is if WYNN can trade clear of $140, which acted as resistance in July. From there, $150 is in the next key level before Wynn stock reaches an 18-month high. * Click to Enlarge Source: Provided by Finviz For market bulls, a bet on a breakout seems wise. The resolution of the trade war, assuming it holds, obviously adds to the bullish sentiment toward the stock. Valuation is reasonable. As long as the external environment holds, WYNN has a real chance to break out. The same is true for rival Las Vegas Sands (NYSE:LVS), an intriguing choice for income investors bullish on the region. Veeva Systems (VEEV)Source: Provided by Finviz Veeva Systems (NYSE:VEEV) has been left out of the market's rally for over five months now. The stock has challenged $170 on a pair of occasions, and quickly receded each time. But the second of Friday's big stock charts shows a name back at support. At these levels, VEEV stock looks interesting -- even if it admittedly still looks expensive: * $140 has held as support on multiple occasions over the past few months, which suggests potential for a bounce. There are some technical concerns, however. There's a modest descending triangle pattern underway. And VEEV stock saw a so-called "death cross" earlier this month, with the 50-day moving average falling beneath the 200-day. * Still, there's an intriguing case here. Veeva has established a dominant market position in life sciences software. Growth has been torrid for years now. And while VEEV stock is expensive at 56x forward earnings, it's not terribly so in the context of high-growth software names. On an earnings basis, VEEV trades roughly in line with Salesforce (NYSE:CRM). Still-unprofitable SaaS (software-as-a-service) names like Okta (NASDAQ:OKTA) and Datadog (NASDAQ:DDOG) trade at a premium relative to revenue. * More broadly, valuation hasn't been much of an issue in the SaaS (software-as-a-service) space. It's not entirely clear why it has been for VEEV stock in the second half of 2019. It's not as if there has been a downside catalyst: Veeva delivered another beat-and-raise quarter late last month. Historically, that had been enough for upside. It may well be again in 2020. Zynga (ZNGA)Source: Provided by Finviz Zynga (NASDAQ:ZNGA) stock touched a seven-year high this summer. But, since then, the third of our big stock charts shows clear resistance. The question is whether ZNGA finally can break through: * There's some reason to think that it can. An ascending triangle pattern usually leans bullish. The stock has cleared near-term moving averages and continues to grind higher. Resistance has been stout, but ZNGA stock looks like it's mounting a legitimate challenge. * As with VEEV, there's a relative valuation case for the stock as well. Zynga stock isn't necessarily cheap at 24x forward earnings, particularly given that analysts see flat bottom-line performance in 2020. But a large cash hoard helps the cause, and ZNGA stock certainly is cheap by tech standards. * Put another way, there simply aren't a lot of stocks that offer both value and the potential for growth. Zynga has both, given its $1.4 billion in cash targeted for acquisitions. The risk here is that the company's successful turnaround largely has run its course. Investors in this market may be willing to bet otherwise.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy to Get 2020 Started the Right Way * 10 Best ETFs for 2020: The Competition Is Stacked Full of Potential * 4 Gold Stocks to Buy as the Yellow Metal Surges The post 3 Big Stock Charts for Friday: Wynn Resorts, Veeva Systems, and Zynga appeared first on InvestorPlace.
It seems that the masses and most of the financial media hate hedge funds and what they do, but why is this hatred of hedge funds so prominent? At the end of the day, these asset management firms do not gamble the hard-earned money of the people who are on the edge of poverty. Truth […]
Activision Blizzard (ATVI) is benefiting from franchise strength. The introduction of Call of Duty: Modern Warfare Battle Pass is expected to boost revenue growth.
On CNBC's "Mad Money Lightning Round," Jim Cramer said GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH ) is a long-term hold. Zuora Inc (NYSE: ZUO ) is in the penalty box for Cramer because it hasn't ...
Activision Blizzard (ATVI) is likely to benefit from portfolio strength with the launch of Hearthstone's Descent of Dragons expansion pack despite intensifying competition.
Take-Two (TTWO) is likely to benefit from portfolio strength with the launch of Kerbal Space Program Enhanced Edition: Breaking Ground expansion pack despite intensifying competition.
(Bloomberg) -- Playrix Holding Ltd., a mobile-game developer that made billionaires of its Russian founders, has bought into about a dozen studios to take on the likes of Activision Blizzard Inc. and Electronic Arts Inc.Brothers Igor and Dmitry Bukhman said in an interview that by 2025 they want Playrix’s sales to catch up with those of the U.S. gaming giants. Over the past year they’ve spent more than $100 million on acquisitions and are planning to more than quadruple their portfolio of titles from about four that are available now.While the gaming industry is awash in investors from KKR & Co. to Zynga Inc., the Bukhman brothers are determined to go it alone. They told Bloomberg News in April that while Wall Street dealmakers such as Goldman Sachs Group Inc. had been in touch, they wanted to expand the business themselves.Since then, the brothers haven’t been persuaded of the merits of giving up control over Playrix in favor of a bigger pot of cash to spend. They prefer to leverage their understanding of the industry to act as a consolidator and nurture smaller players.“Many firms are seeking acquisition targets to add to their revenue and show growth to investors,” Igor said. “We don’t have this pressure and are taking a more long-term approach -- we are helping our portfolio companies to grow. We are sharing our experience and playing a role in their growth.”Playrix said 2019 revenue is likely to reach $1.5 billion, as much as 30% more than the previous year’s, from sales of existing games including Gardenscapes. It was the ninth-biggest publisher last year, according to independent gaming data provider App Annie.New TitlesThe Bukhman brothers are betting their new titles, to be released over the next two years, will push sales into the realm of rivals such as Activision, which reported $7.5 billion in revenue for 2018.“Within five years, we are seeking to join the same league as Activision Blizzard or NetEase Inc., but in the European region,” said Igor, without specifying a revenue target.Playrix’s purchases include studios in Ukraine, Serbia, Russia, Croatia and Armenia, and the 600 people added boost its headcount by more than 50%. The investments range from 30% holdings to controlling stakes in companies that will continue to operate independently. These include Nexters, based in Cyprus and one of Europe’s 10 top-grossing game developers, and Vizor Games, based in Belarus.The brothers are valued at about $1.4 billion each by the Bloomberg Billionaires Index. They landed in the rankings by creating a new variety of match-3 games, which involve completing rows of at least three elements to progress through an animated storyline. The latest acquisitions will allow expansion into gaming genres such as hidden object and simulation.The mobile gaming business is set to exceed $68 billion in revenue this year, according to researcher Newzoo, and have been attracting attention from investors. Playrix will have to compete against these deep-pocketed players if it’s to achieve its goals.Zynga acquired Finnish developer Small Giant Games for $560 million last year, while Israeli Playtika Ltd bought Germany’s Wooga and Austria’s Supertreat. KKR-backed AppLovin invested in Belarusian developer Belka Games and two other firms in September.“Capturing lightning in a bottle twice is the true challenge for a creative firm,” said Joost van Dreunen, managing director of SuperData, Nielsen’s game research arm. “With the popularity of Gardenscapes, Playrix has finally established itself as a force to be reckoned with. However, to build a legacy it will need to repeat this trick.”(Adds analyst comment in last paragraph.)To contact the reporters on this story: Ilya Khrennikov in Moscow at email@example.com;Alex Sazonov in Moscow at firstname.lastname@example.orgTo contact the editors responsible for this story: Rebecca Penty at email@example.com, Jennifer Ryan, Thomas PfeifferFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Today, Zynga Inc. (ZNGA), a global leader in interactive entertainment, is launching an event series in partnership with the hyper sports car manufacturer Bugatti in the hit mobile drag racing game, CSR Racing 2 (CSR2). The event series, which celebrates Bugatti’s 110th anniversary, will give players the opportunity to collect and compete with the world’s most powerful and exclusive hyper sports cars in CSR2.
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 […]
Electronic Arts (EA) and Firemonkeys Studio's licensing partnership with Formula 1 likely to enhance EA's gaming portfolio with the upcoming content updates on Real Racing 3.