Why Zynga Stock Is Compelling Right Now
Today, I’d like to offer you something a little different…
You see, for many years, I’ve played Words with Friends, which is a form of Scrabble, developed by mobile videogame publisher Zynga (Nasdaq: ZNGA).
I admit, it’s a fun game. It keeps me engaged while I’m stuck in an airport or in a doctor’s waiting room – or really – anytime I need to kill 10 minutes.
For as long as I’ve known, Zynga stock has been dead money – despite the fact that it has a compelling game pipeline.
But lately, the company has been making some really impactful in-game improvements that have made its games even more “sticky.” In fact, I’ve found that I’m playing them more often – and I’m more engaged than ever before.
So… back in October when I heard that Zynga reported better-than-expected earnings results, achieving its best quarterly revenue number in its history, I wasn’t surprised.
Colin Sebastian of Baird said…
Zynga has done a good job creating a portfolio of [internet enabled] live services. It means that, with scale, it will lead to more profitability and more visibility.
It may seem silly, but ask yourself…
Will this new decade give birth to a new form of Roaring ’20s for mobile gaming technology?
In other words – have mobile gaming companies finally cracked the code to profitability and sustainability?
It’s worth asking… If you want to invest in companies that stand to benefit from innovations and that are finally starting to figure out how to become profitable mobile gaming platforms, then Zynga (trading for around $6.45 per share) doesn’t sound like a bad bet.
In fact, the company had a strong 2019 – going from $3.50 up past $6. But what sparked my interest was a bullish engulfing pattern last Friday. This was a strong pattern, especially in the midst of Friday’s selling pressure. To me, this could lend itself to a Long-Term Equity Anticipation Securities (LEAPS) opportunity.
Action Plan: While this is not quite how I typically trade in The War Room, I’m still bringing Zynga to your attention today – as I may go “out of the box” for a more longer-term trade. I’m thinking a January 2021 call. If you want the full details on this play – the instant I recommend it – you’re invited to join me in The War Room today!
Why should you join The War Room? Just look at this note that we received yesterday from Russell G., who made $90,000 trading with us – and you’ll have your answer.
Been with The War Room since May, but first time in chat room. For you newbies. I didn’t bother doing paper trades at first. Big mistake. Lost several thousand dollars the first two months. Learned a lot from BB, RH and DM and ended the year $90K ahead and most of my trades are only around $2,000. Read the books, learn how to read candles, SAR from DM. Don’t get discouraged. It will all come together. You can be successful. I hope this helps.
About Bryan Bottarelli
Bryan graduated with a business degree from the highly rated Indiana University Kelley School of Business, and his first job out of college was trading stock options on the floor of the Chicago Board Options Exchange. He was mentored by some of the country’s top floor traders in the heart of the technology boom from 1999 to 2000, where he learned to identify and implement some of his most powerful trading secrets. Now he shares his secrets with a group of elite traders. We will be republishing some of his highly sought after content from his free e-letter, Trade of the Day.