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Zynga: Reopening Pain Just Ended

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  • Zynga boosted Q4'21 bookings guidance setting Q3 as the trough from the reopening.
  • The company has a solid new game launch sequence plus acquisitions to boost bookings going forward.
  • The stock is far too cheap trading at just 10x logical '22 EBITDA targets.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
The market always has amazing dynamics causing investors to over extrapolate on short-term trends. Zynga (ZNGA) benefitted from the covid boost during 2020 and now the company is struggling to report growth due to the tough comps from last year. My investment thesis is very Bullish on the stock following the dip below $7 despite strong results.

Read the full article on Seeking Alpha. 

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

Finviz Chart

Update - Jan. 10

Interesting deal, glad part of the deal is in cash. Similar to Glu Mobile not sure why Zynga felt the need to cash out here. 

-Take-Two (NASDAQ:TTWO) said it is acquiring Zynga (NASDAQ:ZNGA) for $9.86 per share, a 64% premium, as the New York City-based Take-Two looks to expand its mobile offerings.
-Zynga (ZNGA) shares are up more than 40% to $8.44 in pre-market, while Take-Two is down nearly 9% to $149.90.
-As part of the deal, Zynga shareholders will receive $3.50 per share in cash and $6.36 in Take-Two (TTWO) common stock, resulting in an enterprise value of $12.7 billion.

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