Positions I’m Watching: Zynga (ZNGA)

By: Stacey Nickens

Due to the pandemic, more and more people are trying to find creative ways to entertain themselves at home. For that reason, stocks in gaming companies offer attractive growth potential. One such company, Zynga (ZNGA), develops and operates mobile and social networking games. Their second-quarter revenue grew 47% year over year, while their operating cash flow reached a record $145 million.

In addition to their recent growth, Zynga (ZNGA) recently acquired Peak Games in July and will be acquiring Rollic in October. Both of these acquisitions increase Zynga’s long-term growth potential and offer even more revenue-generating opportunities. With the riskier nature of tech stocks, Zynga could be attractive to growth-oriented investors who don’t want to shell out cash for high-priced holdings. Instead, Zynga shares currently sit at just below $9 per share.

Interested in other investment opportunities? Review this analysis of the utilities provider Brookfield Renewable Partners. 

Sources: Morningstar, Seeking Alpha

Disclosures: Past performance is not a guarantee or a reliable indicator of future performance. All securities carry a unique set of risks subject to a variety of factors. There is no guarantee that these investment strategies will work under all market conditions or that they are are suitable for all investors. This material has been distributed solely for informational purposes and should not be considered as individual investment advice or recommendation. Individuals should consult their investment professional prior to making an investment decision.