Tuesday, March 11, 2014
Zynga Inc: Hidden Progress
Recent large gains by Zynga, (NASDAQ: ZNGA ) highlight the benefits of long-term investing around a concept or management team. The struggling social game maker was languishing, until it hired a new CEO with extensive industry experience. Ironically, a month after the hiring of Don Mattrick you could've bought the stock for around $2.75, or roughly the same price the stock traded prior to the announcement.
Mattrick experience includes building up Electronic Arts (NASDAQ: EA ) and he was considered the architect of the Xbox at Microsoft. Following solid quarterly numbers, the stock plunged on angst that Mattrick wasn't making any progress. Outside of a proclamation that the company would double down its focus on social games, the new management team left analysts with limited details on new game development. It also had some wondering how it would allocate its $1.5 billion cash balance.
Read the full article here.
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