This Day On The Street
Continue to site right-arrow
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!

King Digital Bulls Send Investors Chasing Mobile Gaming Stocks: StockTwits

Stocks in this article: KING EA GLUU ZNGA NQ

NEW YORK (TheStreet) -- Analysts backed King Digital (KING) Monday morning. And investors are betting other mobile gaming stocks will ride King's coattails.

$KING well, if they all are that much excited about King, they really rreally rrrreallllyyyy should buy $GLUU for its figs. ($ZNGA) -- Kinji Watanabe (@Kinji) May. 5 at 06:20 AM

Long $NQ $GLUU $KING. Volatile day for me. -- gagan rawal (@jawdoc19) May. 5 at 08:36 AM

This morning, analysts at Bank of America, Deutsche Bank, BMO Capital Markets, Pacific Crest, RBC Capital Markets, Barclays, Cowen and JPMorgan all initiated coverage of the company behind the popular Candy Crush game with a buy rating or equivalent. Analysts at Piper Jaffray and Sterne Agee came out with a neutral rating, according to the Analyst Ratings Network. Price targets range from $21 per share to $31 per share.

$KING wtf, 10 banks upgrated this morning to strong buy PT 21-30$..!!! -- grigorios papaioannou (@gregpap) May. 5 at 04:47 AM

The stock opened nearly 2% higher Monday and kept climbing. The bullish consensus was a real coup for early King investors, who have watched the stock tumble as much as 25% below its March IPO price of $22.50 per share. The stock now trades around $17.56.

When King debuted on the NYSE, investors said bankers did King a disservice by slapping such a high price on shares. The $7 billion valuation implied by King's IPO price would have made the company -- known for one hit game, Candy Crush Saga --worth just 20% less than gaming giant EA  (EA).

But King's haircut has made the stock more attractive. It has a $5.53 billion market cap and trades at 10.2 times trailing 12-month earnings. King sentiment is 60% bullish, according to StockTwits' analytics.

King will report its first-quarter results on Wednesday, May 7, before the open. Analysts said that, although Candy Crush may have peaked, the company still makes a ton of money off of the game, which is free to start and charges for extra lives. Another King game, Farm Heroes Saga, is also gaining traction.

$KING Stop this "One trick pony" sentiment. Candy Crush has plenty of room to run. Next 2 qtrs are guaranteed. Money, money...and more money -- Michael B (@Mbrillo1) May. 5 at 10:05 AM

1 of 2

Select the service that is right for you!

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!


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

  • 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