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BofA/Merrill sees "less valuation upside" for Zynga (ZNGA -4%) following a 47% YTD gain, and has...

BofA/Merrill sees "less valuation upside" for Zynga (ZNGA -4%) following a 47% YTD gain, and has cut shares to Neutral. Shares now reflect the long-term potential value of Zynga's core franchises, says analyst Justin Post, and "competitive real-money poker launches and summer seasonality on core businesses could limit further enthusiasm." BofA upgraded Zynga on Feb. 5, just ahead of a well-received Q4 report.
Comments (12)
  • haleiwahu
    , contributor
    Comments (3543) | Send Message
     
    The Q4 did give ZNGA a boost from Feb, but since then the headwinds seem insurmountable losing about 16% of those gains in only a week.
    20 Mar 2013, 10:10 AM Reply Like
  • Robert Geoghan
    , contributor
    Comments (30) | Send Message
     
    I suppose we will have to wait and see whether Zynga has an advantage over it's competitors for real money poker. It's due to launch here in the UK in a few weeks.
    20 Mar 2013, 10:16 AM Reply Like
  • haleiwahu
    , contributor
    Comments (3543) | Send Message
     
    R G - what possible advantages could ZNGA have or could create over it's competitors?
    24 Mar 2013, 10:19 AM Reply Like
  • slcUTAH
    , contributor
    Comments (535) | Send Message
     
    I sold my Zynga position the morning after the Yahoo rumor created the POP for the share price. I bought in around $2.90. The stock has been gliding down since that time. I agree with Robert that it's now a wait and see situation with the company for any developments on their online gaming plan. It may be a long time. I'll keep the company on my watch list.

     

    -Cheers!
    20 Mar 2013, 10:58 AM Reply Like
  • haleiwahu
    , contributor
    Comments (3543) | Send Message
     
    slc - IMHO I think that you made a good move to sell ZNGA. You made a small profit and now wait to see if all the recent hype is valid or not. The fact that they have lost much of the position they gained in the last few weeks makes me wonder if the hype is already over. This week should be an interesting tell. If ZNGA dips below $3 it could be the death blow some are expecting. If not then the hype had merit.
    24 Mar 2013, 10:23 AM Reply Like
  • ps677
    , contributor
    Comments (165) | Send Message
     
    Zynga will do great in the UK..Just wait and watch. Do you have a data of how many people from UK as well as Europe play Zynga poker every day? Also, do you have data of on average how much time they spend playing poker online? Whether its free or not does not matter I think. By now, many of the poker players are Level 70 and above. To reach that level you have to play for more than 6 months. At this point, most of the people feel that they've learned a lot for free. Now it is the examination to make real money. I'm in since it was in the 2.20 range, long time ago!
    20 Mar 2013, 12:26 PM Reply Like
  • Nocifer
    , contributor
    Comments (174) | Send Message
     
    Lol. When GLUU launched single online gambling game in UK, it's share price surged almost double in very short time. One freaking game??? Zynga plans to launch ~180 whopping online gambling games before July, 2013.. If one single game launch excites GLUU that much, imagine how 180 game launch excitement level would be on Zynga stock price? :)

     

    You (except daily traders) all are thinking too short-term effect. See big price drop means doomsday for ZYNGA? Oh please.. It's merely temporary.. Long term will pay off well like turtle did over rabbit in a race..
    20 Mar 2013, 12:56 PM Reply Like
  • romilar
    , contributor
    Comments (674) | Send Message
     
    Bought ZNGA just above 3.00.Not selling.If price continues to drop,at the right price,I will double position.If on line gambling never happens (and we all think otherwise) ZNGA on its' plain gaming merits will come close to its' IPO in 12 to 14 mos.That will be about three times todays price.ZNGA has so many scenarios within its' grasp that are upside and so little that can take it down and out,the favorable odds make it almost compelling.

     

    Just my opinion and my plan.Respectfully....Rom
    20 Mar 2013, 11:30 PM Reply Like
  • Lifethhrd
    , contributor
    Comments (3) | Send Message
     
    It would seem this analyst is not much of a gambler or poker player. How is it that he feels enthusiasm would be limited with real money poker?
    Seems to me that would rocket enthusiasm through the roof. Solid earnings should follow in 2013. Just my humble opinion
    21 Mar 2013, 01:59 AM Reply Like
  • haleiwahu
    , contributor
    Comments (3543) | Send Message
     
    It'll be interesting to see if the "solid earnings" you mention become a reality. As far as I have seen, social media produces token income not solid earnings unless advertising & media support gets involved.
    24 Mar 2013, 10:26 AM Reply Like
  • tdsx2jcs
    , contributor
    Comments (5) | Send Message
     
    This is just a way for BoA to get rich. These large institutions will be loading up slowly before they upgrade again. Just another way that the big banks get richer... I bought in at $3.51 and will hold until $5.00 - $6.00, it will be here before the end of the year, watch and see. Zynga is under serious pressure to release news of their online gambling now.

     

    Isn't a $500 Million buy-back coming also?
    21 Mar 2013, 05:05 AM Reply Like
  • Nocifer
    , contributor
    Comments (174) | Send Message
     
    No. It's 200 Million not 500..
    25 Mar 2013, 08:02 PM Reply Like
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