NEW YORK (TheStreet) -- Zynga's (ZNGA) stock performance over the last two years has been rough to say the least. There are some glimmers of hope that these shares are on the rebound in the near term.
Zynga was a champion of Web-based games and used Facebook (FB) to make its games go viral. The shift in casual gaming from the Web to mobile devices caught Zynga by surprise, however, and this was largely responsible for the stock's downfall.
The company has shown promise in the last year in developing compelling, mobile-first titles.
Four titles are currently known to the public: Empires and Allies, Farmville Harvest Swap, Dawn of Titans and Mountain Goat Mountain. Zynga hasn't made the latter two available globally yet but is beta-testing them in foreign markets.
The quality of these games relative to their former Web peers are solid. Empires and Allies and Farmville Harvest Swap are both globally available and are monetizing well with seemingly zero paid marketing being done so far. Zynga CEO Mark Pincus said on the latest conference call that the plan is to release five to eight titles in 2015, so there could be some surprises coming.
Meanwhile, an important stock market measure shows that fewer investors and traders are making bearish bets on Zynga's stock.
It is clear that there are fewer people willing to bet against Zynga at the moment. That's a sign that there's some potential for this stock, especially considering how high Zynga's short interest has traditionally been. Although declining short interest alone shouldn't be used to make investment decisions, this steep decline is noteworthy. Shares of Zynga were changing hands early Monday at $2.93, down 1 cent.
Data via Nasdaq.com