Monday, June 9, 2014

Why Zynga's Drop Is a Buying Opportunity


Following an investor presentation -- on the back of news of more executive departures -- Zynga (NASDAQ: ZNGA  ) shares plunged to lows not seen in nearly a year. While investors shouldn't attempt to time the market, they should take advantage of large moves in either direction to modify positions. As long as an investing thesis hasn't changed, investors can use their acquired knowledge of the company to take advantage of a large, outsized market move that happens too often these days.

Anybody following Zynga over the last year knows that the company is in the midst of finishing up a turnaround led by CEO Don Mattrick. The company has shown a promising reversal in user trends and monetization metrics and is now embarking on a path toward growth. In the midst of all these improvements, investors became overly cautious on the mobile and social gaming sector following the disappointing IPO of King Digital Entertainment (NYSE: KING  ) .

Read the full article here.


Disclosure: Long ZNGA. Please read the disclaimer page for more details.

No comments: