Why Zynga Is Up 40% in 3 Days

Zynga has enjoyed a nice few days. Shares are up considerably after the company reported earnings alongside a promising acquisition, and getting another boost from an analyst upgrade.

Feb 4, 2014 at 9:15PM

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.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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