7.02 0.00 (0.00%)
After hours: 6:05PM EST
|Bid||7.02 x 38800|
|Ask||7.05 x 38800|
|Day's range||6.75 - 7.11|
|52-week range||4.95 - 7.29|
|Beta (5Y monthly)||0.35|
|PE ratio (TTM)||175.50|
|Earnings date||28 Apr 2020 - 03 May 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||7.72|
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, if...
Zynga (ZNGA) delivered earnings and revenue surprises of -33.33% and 3.78%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
Zynga's (ZNGA) fourth-quarter 2019 results are likely to benefit from growth in its mobile live services supported by new and existing franchise games.
Zynga (ZNGA) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Las Vegas Sands' (LVS) fourth-quarter 2019 revenues are expected to have declined due to soft Sand Cotai Central. Yet, higher margins from mass and non-gaming segments are likely to have boosted its profits.
(Bloomberg) -- The electronic sports industry is likely to grow significantly in coming years and stocks in the sector are poised to benefit, according to DBS Group Holdings Ltd.E-sports, or multiplayer video games played competitively by professional gamers, is a key investment theme in the Singapore-based bank’s quarterly CIO outlook as the phenomenon gains traction among increasingly wealthy millennials and their Generation Z counterparts. Live streaming will help lead to “exponential growth,” with companies such as Activision Blizzard Inc., Nintendo Co. and Tencent Holdings Ltd. set to benefit, according to Thursday’s report.“E-sports is expected to undergo phenomenal growth in the coming years - from both a viewership and monetization standpoint,” the report said. “Game developers are predominantly the biggest beneficiaries given that they are involved in almost every facet of e-Sports – from games publishing to the creation of leagues and the hosting of tournaments.”Streaming platforms and hardware manufacturers will also benefit, it said.Read: Even Small Esports Names Gain as Industry Matures, Stephens SaysExposure to the field has already been paying off for investors. The MVIS Global Video Gaming and eSports Index is up 47% since the end of 2018, compared with the S&P 500’s 31% advance. The gauge of 25 companies which includes NetEase Inc., Zynga Inc., Take-Two Interactive Software Inc. and Electronic Arts Inc., has risen 3.4% this year versus a 1.4% gain in the broader benchmark.(Adds story link after fourth paragraph.)To contact the reporter on this story: Joanna Ossinger in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Christopher Anstey at email@example.com, Cormac Mullen, Naoto HosodaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Frank Gibeau had only just become Zynga Inc.’s CEO, but he had to deliver some bad news.The once-high-flying company, which shot to fame with Facebook games such as FarmVille, was now in trouble. At an all-hands meeting in Zynga’s cafeteria in March 2016, Gibeau put up a slide showing its return on equity compared with video-game peers. The room was very quiet.“I showed them that we are the worst of the worst,” he recalled in an interview. “We are generating less return than everybody else in the industry.”Fast-forward three years, and the mood is very different. The company increased its guidance three times last year. Profit margins have rebounded, and sales are growing at their fastest pace since the game developer went public in 2011. Zynga is “on track to be one of the fastest-growing -- if not the fastest-growing -- gaming company at scale,” Gibeau said.Zynga shares have nearly tripled to $6.15 since Gibeau, now 51, took over as chief executive officer. That includes a 56% gain in 2019, eclipsing the S&P 500’s 29% increase.The stock is still far below its post-IPO high set in 2012, when the exuberance around social media propelled Zynga to almost $16. But shareholders and Wall Street analysts are embracing the company again.“Investors like a good turnaround story,” said Colin Sebastian, an analyst at Robert W. Baird & Co.Along the way, Gibeau reinvented what Zynga is about. It now makes only a sliver of its money from Facebook-based games, which gave the company a reputation for delivering endless requests and notifications to social-media users.Instead, Zynga focuses on stand-alone titles that consumers play on their phones. They include Words With Friends, Zynga Poker, and Merge Dragons!, which lets players combine dragon eggs and treasures to produce skills and objects.Zynga also has used acquisitions to dial up growth. In 2018, it agreed to buy controlling stakes in Small Giant Games for about $560 million and Gram Games for $250 million. And it has a war chest of cash and short-term investments that’s approaching $1.5 billion, which could be used for additional deals. To raise money, Zynga has sold bonds and made more than $300 million from unloading its San Francisco headquarters in a leaseback deal last year.Spending SpreeThe idea is to create a mini-empire of game studios and franchises, said Gibeau, a veteran of Electronic Arts Inc.“We see a lot of opportunities to acquire assets that would grow value for shareholders,” he said. “We want to put those dollars to use.”Zynga is preparing to reinvent itself again by embracing new platforms and devices -- no matter what they may end up being.“Ten years from now, I know for a fact that the platforms will be different,” he said. “There could be other platforms -- like streaming platforms, cloud-based gaming.”The video-game consoles that dominated the industry for so long may not exist in a decade, opening the door to other options, Gibeau said. “I want our games to be playable on anything, even if it’s a toaster or refrigerator.”Zynga has already jumped onto Snapchat. And while it hasn’t provided details on what else is in the works, the company is developing a new multiplatform strategy.“We have a saying, ‘Make platform transition your friend,’” Gibeau said. “You can turn yourself out of position, which frankly Zynga did by being so focused on Facebook.”When Zynga struggled to pull out of its slump, co-founder Mark Pincus recruited Gibeau out of retirement. Though Gibeau was only in his 40s, he’d already spent 25 years at Electronic Arts and helped turn that company around.“I really wasn’t looking for a job,” Gibeau said. “I was getting in shape. I was flying airplanes. I was looking to apply for a master’s program in history. I was spending time with my kids, traveling.”But Bing Gordon, a fellow Electronic Arts veteran who served on Zynga’s board, approached Gibeau for help on behalf of Pincus. A 30-minute chat over coffee with Pincus turned into a three-hour meeting, and Gibeau soon joined Zynga’s board. He found himself visiting the company once a week, then everyday, and he was asked to become CEO.“I just fell in love with the place -- I love turnarounds,” Gibeau said. “I learned a lot from the failures at EA. I looked at it and thought, ‘Man, this is perfect.’ I knew exactly what to do here.”The biggest task was focusing. Under Gibeau’s new management team, Zynga went from working on about 140 projects to a dozen games.The company concentrated on so-called live services -- basically, providing new content for existing games on an ongoing basis -- and tried to make its games more complex and engaging. It also invested in titles tied to movie franchises, such as Harry Potter and Star Wars. And Zynga expanded into Asia and other markets.‘Firm Footing’“The company has significant live-services expertise and has a strong advertising platform, so it can help rapidly scale promising games as they come to market,” said Matthew Kanterman, an analyst at Bloomberg Intelligence. “All in, Zynga is on firm footing for the next few years.”Zynga’s comeback is far from complete. Its profit margins still trail those of peers, and its ability to catch up will depend on the games it releases in 2020 and beyond.But the company has a happier workforce -- and takeover targets actually want to be acquired by Zynga. That wasn’t the case a few years ago, said Mike Hickey, an analyst at Benchmark Co.“Frank and his management just reset the culture and what the market perceives Zynga to be,” he said. “You stop worrying about losing your job and start getting excited about the bonus you make because you’ve hit your goals. That’s the biggest step in a turnaround.”To contact the reporter on this story: Olga Kharif in Portland at firstname.lastname@example.orgTo contact the editors responsible for this story: Nick Turner at email@example.com, Rob Golum, John J. Edwards IIIFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Activision Blizzard (ATVI) is benefiting from franchise strength. The introduction of Call of Duty: Modern Warfare Battle Pass is expected to boost revenue growth.
Activision Blizzard (ATVI) is likely to benefit from portfolio strength with the launch of Hearthstone's Descent of Dragons expansion pack despite intensifying competition.
Take-Two (TTWO) is likely to benefit from portfolio strength with the launch of Kerbal Space Program Enhanced Edition: Breaking Ground expansion pack despite intensifying competition.
(Bloomberg) -- Playrix Holding Ltd., a mobile-game developer that made billionaires of its Russian founders, has bought into about a dozen studios to take on the likes of Activision Blizzard Inc. and Electronic Arts Inc.Brothers Igor and Dmitry Bukhman said in an interview that by 2025 they want Playrix’s sales to catch up with those of the U.S. gaming giants. Over the past year they’ve spent more than $100 million on acquisitions and are planning to more than quadruple their portfolio of titles from about four that are available now.While the gaming industry is awash in investors from KKR & Co. to Zynga Inc., the Bukhman brothers are determined to go it alone. They told Bloomberg News in April that while Wall Street dealmakers such as Goldman Sachs Group Inc. had been in touch, they wanted to expand the business themselves.Since then, the brothers haven’t been persuaded of the merits of giving up control over Playrix in favor of a bigger pot of cash to spend. They prefer to leverage their understanding of the industry to act as a consolidator and nurture smaller players.“Many firms are seeking acquisition targets to add to their revenue and show growth to investors,” Igor said. “We don’t have this pressure and are taking a more long-term approach -- we are helping our portfolio companies to grow. We are sharing our experience and playing a role in their growth.”Playrix said 2019 revenue is likely to reach $1.5 billion, as much as 30% more than the previous year’s, from sales of existing games including Gardenscapes. It was the ninth-biggest publisher last year, according to independent gaming data provider App Annie.New TitlesThe Bukhman brothers are betting their new titles, to be released over the next two years, will push sales into the realm of rivals such as Activision, which reported $7.5 billion in revenue for 2018.“Within five years, we are seeking to join the same league as Activision Blizzard or NetEase Inc., but in the European region,” said Igor, without specifying a revenue target.Playrix’s purchases include studios in Ukraine, Serbia, Russia, Croatia and Armenia, and the 600 people added boost its headcount by more than 50%. The investments range from 30% holdings to controlling stakes in companies that will continue to operate independently. These include Nexters, based in Cyprus and one of Europe’s 10 top-grossing game developers, and Vizor Games, based in Belarus.The brothers are valued at about $1.4 billion each by the Bloomberg Billionaires Index. They landed in the rankings by creating a new variety of match-3 games, which involve completing rows of at least three elements to progress through an animated storyline. The latest acquisitions will allow expansion into gaming genres such as hidden object and simulation.The mobile gaming business is set to exceed $68 billion in revenue this year, according to researcher Newzoo, and have been attracting attention from investors. Playrix will have to compete against these deep-pocketed players if it’s to achieve its goals.Zynga acquired Finnish developer Small Giant Games for $560 million last year, while Israeli Playtika Ltd bought Germany’s Wooga and Austria’s Supertreat. KKR-backed AppLovin invested in Belarusian developer Belka Games and two other firms in September.“Capturing lightning in a bottle twice is the true challenge for a creative firm,” said Joost van Dreunen, managing director of SuperData, Nielsen’s game research arm. “With the popularity of Gardenscapes, Playrix has finally established itself as a force to be reckoned with. However, to build a legacy it will need to repeat this trick.”(Adds analyst comment in last paragraph.)To contact the reporters on this story: Ilya Khrennikov in Moscow at firstname.lastname@example.org;Alex Sazonov in Moscow at email@example.comTo contact the editors responsible for this story: Rebecca Penty at firstname.lastname@example.org, Jennifer Ryan, Thomas PfeifferFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.