Zynga (ZNGA) Stock Declines as Investors Anticipate Weak Q1 Bookings
NEW YORK (TheStreet) -- Zynga (ZNGA) - Get Report stock is down 0.84% to $2.36 in afternoon trading on Monday after analysts warned that investors should expect further declines in bookings, or adjusted revenue, for the online gaming company's 2016 first quarter.
"While the company is benefiting from several capital and operational efficiencies, user and bookings declines are still rightfully weighing on the stock," Canaccord Genuity analysts wrote in a note released before today's opening bell.
In February, San Francisco-based Zynga said bookings will be between $150 million and $165 million for the 2016 first quarter, down from bookings of $167 million for the 2015 first quarter.
Overall, Wall Street is anticipating a loss of 1 cent per share for the latest quarter, unchanged from the same period last year. Revenue is expected to fall 3.20% year over year to $162.13 million.
Zynga will release its 2016 first quarter financial report on Wednesday after the market close.
Separately, Zynga has a "sell" rating and a letter grade of D+ at TheStreet Ratings because of the company's weak operating cash flow and unimpressive growth in net income.
You can view the full analysis from the report here: ZNGA
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
