Game Makers Up
Already rallying in anticipation of higher game sales next year, Take-Two (TTWO) and Electronic Arts (EA) are up more than 25%. Even though Zynga (ZNGA) will not benefit from the console refresh, its focus on digital game distribution via mobile devices is boosting its share price:
Now that the Xbox One announcement is largely priced in shares of Take-Two and EA, investors should look at Zynga instead.Piper recently raised its target price for Zynga. The investment firm cited growth in mobile games and stability in its core business as a reason for the $3.50 target price. New titles are also positive. Zynga launched Running with Friends globally. The title was made in partnership with Eat Sleep Play. Zynga closed recently at around $3.40, and is down sharply from a $4 price reached in March. As Zynga keeps its costs down, releases more hit titles, and enters the online gambling market, investors will bid shares higher.
Written by Chris Lau, Kapitall Contributor
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