In the video below, Fool senior technology analyst Eric Bleeker discusses the wild trading action in Zynga (NASDAQ:ZNGA) during the past two days. Yesterday, it soared more than 14% but sagged more than 8% today -- on little news.
The wild trading can be partly attributed to the company's association with Facebook (NASDAQ:FB), which also traded up yesterday and dropped today. However, in the end, Eric thinks the most meaningful news for Zynga for the past couple of days might be peer Facebook-reliance gaming network Kabam announcing yesterday that it was profitable. That's a positive, since Kabam is moving from being a Facebook-heavy gaming company to a mobile player. However, Eric also warns that Kabam is less than one-fifth the size of Zynga. It's far more difficult to pull off a mobile transition for a company of Zynga's size than for a smaller $200 million one.
Eric Bleeker has no position in any stocks mentioned. The Motley Fool recommends Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.