NEW YORK (TheStreet) -- Zynga (ZNGA) has found a new CEO and shareholders are cheering the move. Here to break down what it could mean for the company are TheStreet's Debra Borchardt and Scott Redler, chief strategic officer of T3Live.com.
While the stock jumped about 10% yesterday on the rumor that Zynga might have a new leader, investors were not disappointed, as the stock ran another 7% on Tuesday morning when that news was confirmed.
Don Mattrick, formerly with Microsoft's (MSFT) Xbox division, will take over the role of CEO on July 8.
While the traders who jumped into the stock yesterday on the rumor will likely sell soon, the long-term promise of new leadership should take the stock higher, according to Redler.He added that Mattrick has been in gaming long before he went to Microsoft. He brings a deep background of gaming to Zynga, which could propel the stock over $4, where there is stiff resistance. Mattrick will have to prove himself, though, and that will likely take him a couple of quarters to do. Because of that, Redler suggests waiting for a pullback into the lower $3 range before getting long the stock. He concluded, "If it gets over $4 in the next few quarters, that's where it gets momentum." -- Written by Bret Kenwell in Petoskey, Mich. . Follow @BretKenwell
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