Could Blockchain Games be the Biggest Growth Factor for ZNGA?

Home » Blog » Could Blockchain Games be the Biggest Growth Factor for ZNGA?
Zynga stock, ZNGA stock, ZNGA stock news

Could Blockchain Games be the Biggest Growth Factor for ZNGA?


ZNGA has dropped by nearly 50% since its 52-week high

Zynga Inc. (NASDAQ:ZNGA) is an interactive entertainment company with reach in more than 175 countries and regions. ZNGA has a diverse portfolio of popular game franchises that have been downloaded more than four billion times on mobile. Additionally, Zynga owns Chartboost which is a mobile advertising and monetization platform. ZNGA closed its last day of 2021 at $6.40.

ZNGA and Forte, a developer of blockchain solutions for game publishers, announced on December 21 that the two companies have formed a strategic alliance to promote and pursue the opportunities in the blockchain games market. This will include leveraging Zynga’s intellectual property, brand, and community to develop blockchain-centric games.

Zynga stock has decreased about 34% year-over-year and has shed 47% since peaking at $12.32 in mid-February. However, shares of ZNGA are still up 18% after just falling to a bottom of $5.57 earlier this month.

Fundamentally speaking, the entertainment stock offers an intriguing valuation and growth rate. Zynga stock currently trades at price-sales ratio of 2.49, which is a great value considering ZNGA’s high revenue growth in recent years. Zynga has increased its revenues 38% since fiscal 2020 and a whopping 200% since fiscal 2018. In addition, ZNGA’s revenues are expected to grow another 11% in 2022.

Moreover, Zynga has a manageable balance sheet with $1.34 billion in cash and $1.49 billion in total debt, allowing the brand to continue expanding in the short-term without having to put a great focus on its net income. Zynga stock also has a forward price-earnings ratio of 18.59, which signals an expected growth in earning and represents a strong value for a growth company.

With all this said, now might be a good opportunity to speculate on Zynga stock with options. The security sports a Schaeffer’s Volatility Index (SVI) of 41% which sits in the relatively low volatility 12th percentile of its annual range. In other words, options traders’ volatility expectations aren’t that high at the moment. 


Original article

Click here to view the original article

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn
On Key

Related Posts

Markets set to open slightly higher

Herbalife, GitLab, Textron and more

Take a look at some of the biggest movers in the premarket: Herbalife Nutrition (HLF) – Herbalife tumbled 9.8% in premarket trading after the nutrition