This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Reasons Why Zynga's Focus on Mobile is a Good Thing

Stocks in this article: FB GLUU ZNGA

Chris Lau, Kapitall: Mobile gaming will be the key to reviving Zynga's fortunes.

When Zynga (ZNGA) releases  FarmVille 2: Country Escape, the sequel to its highly successful Facebook (FB) game FarmVille, it will attempt to capitalize on a growing platform: mobile. Zynga stock is still far from its $10 share price last reached in 2012. Will this move be good for the company?

Shift to mobile

In an ongoing effort to shift away from social gaming, Zynga will release Farmville 2 for tablet and smartphone devices. Farmville relied heavily on a partnership with Facebook.  

[Read more from Kapitall: Celebrate 25 Years of the World Wide Web with These Profitable Internet Stocks]

The game had 400 million users. It was successful – if user count matters. Farmville 2 matches the game play duration with smartphone user attention spans. Game progress may be achieved in a few minutes. There are two key differences between the two versions: the second version relies far less on the social aspect of play, and it also offers offline playability.

Words With Friends and Zynga Poker will also be refreshed.

Alternative investing ideas

Zynga’s reach towards mobile is alluring investors. The stock is up steadily from the low $2’s reached in late 2012. For contrast, Glu Mobile (GLUU) is up nearly 100% , compared to the 52% increase in shares of Zynga over the last year.

​Click on the interactive chart to view data over time. 

Zynga’s latest acquisition

Zynga’s $527 million acquisition of NaturalMotion in January could help the company broaden its product line. NaturalMotion made CSR Racing and Clumsy Ninja. NaturalMotion’s approach in focusing on entertaining users will be good for Zynga. Zynga is under pressure from shareholders to create hit titles. By emphasizing on making games that delight its users, Zynga’s slow and steady recovery should be sustainable.

 

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs