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!

Zynga Is a Chinese Takeover Candidate at Content Hungry Web Sites


NEW YORK (TheStreet) -- Unlocking Zynga's (ZNGA) upside potential may happen sooner than expected if content hungry Chinese firms have their way. China's mobile gaming market is growing at an estimated 20% a year and worth about $3 billion.

I think Zynga is a value buy with many possible paths higher. I wrote a Real Money Pro post with exact entries and profit targets that you will want to take a look at.

ZNGA Chart

In comparison, the U.S. mobile game market is valued at $3.2 billion and showing signs of maturity. Industry experts believe the Chinese mobile game market will overtake the U.S. this year. There are already more smartphones in China than the total U.S. population. Worldwide, the 2014 mobile game market is anticipated to exceed $21 billion in revenue.

You may have played one of the many Zynga games and King Digital's (KING) Candy Crush Saga, but are you familiar with Crossfire by G4Box? Crossfire claims 400 million or more users and is the world's number one revenue generating freemium game. In 2013, Crossfire produced almost a billion dollars in revenue.

Chinese gamers started playing Crossfire in 2008 when Asia's largest Internet company, Tencent Holdings bought the Chinese rights. Shenzhen, China-based Tencent Holdings trades on the Hong Kong exchange.

Tencent Holdings bought the Candy Crush Saga Chinese version rights and is in an arms-race for market share against the likes of Baidu (BIDU) Alibaba Group. Yahoo! (YHOO) owns about 24% of the soon-to-IPO Alibaba. It's an IPO that will provide Alibaba and Yahoo! plenty of cash to use for expansion.

Tencent Holdings' war chest is also expanding based on Tencent Holdings' earnings report this month.The company reported a 60% jump in first-quarter profit and stated it intends to leverage its WeChat platform to market mobile games.

1 of 3

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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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