Wednesday 16 Apr 2014

Zynga, Inc. (ZNGA) Glu Mobile, Inc. (GLUU)

Zynga, Inc. (ZNGA) Nasdaq

 

Zynga Inc is a company based in San Francisco, California that was founded in 2007.

 

December 16, 2011 ZNGA began trading at 10$ per share at its IPO price. In March 2012 the shares reached an all time high above $15 then, steadily declined over the 2 years. Today the stock is priced at $3.10 after an 11% gain today. The announcement came in earlier today that Don Mattrick, head of Xbox division is leaving Microsoft and talking with Zynga. It is being rumored that he will take over as the CEO of Zynga.  Znyga shares are being traded at a volume of 40,000,000 comparably high to it’s average volume of 22,840,800, which has shot the stock price up. The model and the basis of the company has much potential with over 250 million active users. With hit games such as Zynga poker , Farmville and Cityville they have generated much revenue. These mobile games provide great revenue but have limited growth and the company soon realized that. In April 2013 Zynga launched real world gambling in the U.K where users are able to gamble online just like casinos. Zynga is attempting to bring this platform over to the U.S and the potential is great. It is estimated that Zynga’s online gambling plan will equal, if not exceed revenues of casinos. Overall as a company Zynga has suffered many hardships since it’s IPO ,but many believe it has bottomed out and can only go up from now.

 

Sentiment: Long term: Strong Buy

Glu Mobile, Inc. (GLUU) Nasdaq

 

Glu Mobile Inc. is a company based in San Francisco, California that was founded in 2001.

Glu Mobile is a game developing company that is famous for many mobile games including Blood & Glory, Big Time Gangsta, Contract Killer, Contract Killer: Zombies and Deer Hunter. Similar to Zynga this company has had trouble monetizing it’s games. Glu Mobile 52w range of 1.99-5.90 makes it almost impossible to predict where this stock is going. Currently trading at $2.34 up nearly 6% today has gone up on volume. Glu Mobile is approaching a new type of platform such as Zynga and that is online gambling. Soon after Zynga announced online gambling Glu Mobile made an announcement that it will also start doing research for a future online casino. The thing that GLUU is really missing is a major hit in terms of games. It hasn’t had any major hits ,which is the reason why they are trailing behind. Real world gambling will be what saves GLUU if they can expand worldwide. The increase number of smartphone users in India and China will only help Glu Mobile expand it’s reach. In days to come GLUU will be a strong buy, but for now this stock is to be watch closely as it could move in either direction.

Sentiment: Hold

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