Why Zynga Is Up 40% in 3 Days

It's been just three trading days since social game maker Zynga  (NASDAQ: ZNGA  ) reported earnings, yet shares had gained 40% at today's high. Not only were investors optimistic about last quarter's results, but shares also got another boost today in the form of an analyst upgrade. UBS has upgraded the stock from "neutral" to "buy" while similarly pumping its price target from $4 to $6. CEO Don Mattrick is starting to put a turnaround together, starting with cost-cutting and the $527 million acquisition of NaturalMotion.

Many investors may be tempted to remember the botched acquisition of OMGPOP, which took only six months for Zynga to recognize its mistake. However, NaturalMotion has innovative technologies such as its Euphoria animation engine that powers numerous popular gaming titles among different platforms. Euphoria is one of several possible licensing opportunities that Zynga has going forward, and the foundations of a turnaround are now visible. Still, Zynga will need to get past its image as a shameless copycat if it ever wants to win investors back.

In this segment of Tech Teardown, Erin Kennedy discusses Zynga's rally with Evan Niu, CFA, our tech and telecom bureau chief.

A better social pick
Opportunities to get wealthy from a single investment don't come around often, but they do exist, and our chief technology officer believes he's found one. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but also your entire life. To learn the identity of this stock for free and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.

Read/Post Comments (2) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 05, 2014, at 12:40 AM, shgkhjqs wrote:

    What is up your #$@! about ZGNA? The whole lot of you are serious haters. It would be appropriate if someone there were able to write something balanced and constructive about the company or are you'll happy becoming the Fox news of the financials?

  • Report this Comment On February 05, 2014, at 3:34 PM, speculawyer wrote:

    Because people still buy into tech bubble stocks.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2823815, ~/Articles/ArticleHandler.aspx, 8/30/2015 12:19:24 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Evan Niu

Evan is a Senior Technology Specialist at The Motley Fool. He was previously a Senior Trading Specialist at a major discount broker. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
ZNGA $2.52 Up +0.10 +4.13%