Zynga: There's Still A Compelling Short Case Here
Vince Martin • 27 Comments
Vince Martin • 27 Comments
Zynga Is Still A Dog
Vince Martin • 24 Comments
Vince Martin • 24 Comments
Wed, Aug. 10, 9:10 AM
- Former NBA Commissioner David Stern will make a key speech at the Global Gaming Expo next month in which he will present the case for legalizing sports betting, according to ESPN.
- Stern's turnaround on sports betting lines him up with the views of current NBA commissioner Adam Silver who supports a federal framework of betting regulations. The NBA has a small stake in FanDuel (Private:DUEL) in what could be considered a bit of a hedge.
- Sports betting is slated to be a major focus of the Global Gaming Expo scheduled for September 26-September 29 at the Sands Expo. The Nevada Gaming Commission is also considering allowing remote wagering from all 50 states in what could be a major disruption to the industry if passed.
- Earlier this week, a federal court blocked New Jersey from offering legalized sports betting as it upheld the Professional and Amateur Sports Protection Act.
- POTUS watch: Both Donald Trump and Hillary Clinton have offered some support for legalized sports betting in prior comments, but don't have well-defined positions on the issue.
- Broadly-related stocks: ISLE, PENN, PNK, BYD, GLPI, CHDN, MCRI, OTCQB:TPCA, CNTY, ERI, NYNY, DDE, UWN, FLL, CZR, CACQ, MGM, LVS, WYNN, DRAFT, DDAY, OTCPK:DTFSF, ZNGA, OTC:WIMHF, AYA, OTCPK:EIHDF, SGMS, OTCQB:GLXZ.
Fri, Aug. 5, 12:45 PM
- After hitting a 52-week high yesterday, Zynga (NASDAQ:ZNGA) is 7.2% lower today following a Q2 revenue miss that featured some downbeat news on its bookings.
- Bookings (recognized revenue plus the change in deferred revenue) fell 4% from the first quarter, to $175M. The company guided Q3 bookings for $180M-$190M, along with revenue of $170M-$180M (below consensus for $183.9M).
- That guidance looks conservative, Jefferies says in reiterating its Buy rating and $5 price target (implying 81% upside from today's $2.76): "By year-end we believe user metrics (which have mostly stabilized) could begin to inflect upwards for the first time in years. We note ZNGA does not need a breakout hit to drive growth and profitability and we continue to think the risk/reward looks attractive at these levels especially with $1.25 per share in cash, investments, and real estate."
Fri, Aug. 5, 9:12 AM
Thu, Aug. 4, 4:15 PM
- Zynga (NASDAQ:ZNGA) is off 9.8% after hours as its Q2 earnings came to break-even as expected, but missed on revenues, and users continued to decline.
- Revenues fell 9% to $182M; online game revenue of $136M was down 16% Y/Y. Bookings came to $175M, flat Y/Y but down 4% sequentially.
- Average daily active users fell 15%: Average mobile DAUs were down 11% to 15M, and average Web DAUs down 28% to 3M.
- Average monthly active users dropped 26% to 61M. Of those, average mobile MAUs fell 23% to 49M while average Web MAUs dropped 37% to 12M.
- Average daily bookings per average DAUs grew 17% to $0.107. Average monthly unique payers were 0.9M of 50M monthly unique users, ending up as a payer conversion rate of 1.8% (up from year-ago 1.6%).
- Live discussion to come at 5 p.m. ET.
- Press Release
Thu, Aug. 4, 4:05 PM
Thu, Aug. 4, 10:20 AM
- Zynga (NASDAQ:ZNGA) has tapped Matt Bromberg as its chief operating officer, effective Aug. 8.
- He joins the social-gaming company after most recently serving as senior VP of strategy and operations for mobile gaming at Electronic Arts. Prior to that role, he was general manager of EA's Bioware studios.
- Zynga says he will have oversight of the Business Operations and Strategy, Technology, IT, Data Science, Visual Design and Global Player Experience teams, as well as its Bangalore, India-based game studio.
- The company reports Q2 earnings after the closing bell today.
Wed, Aug. 3, 5:35 PM
- AAOI, ABTL, ACAD, ACHN, ACXM, AHS, AHT, AIRM, AL, ALNY, AMBR, AMH, AMRS, ANET, ASYS, ATRC, ATVI, BBG, BLDR, BMRN, BRS, CARA, CBPO, CERS, CINR, CPSI, CPST, CSOD, CTRL, CYTX, DCO, DCT, DMD, EBS, ECOM, ECPG, ECYT, ED, EFC, EGOV, EOG, ESL, EVDY, EVH, FCE.A, FEYE, FFG, FLDM, FLR, FLT, FPRX, FRPT, FRT, FTD, GCAP, GDOT, GEOS, GSAT, GSBD, GST, GTY, GXP, HDP, HE, HTGC, ICON, IILG, IMMR, IMPV, INAP, INGN, IRWD, IVR, JMBA, JUNO, KHC, KMPR, KND, KTOS, KW, LADR, LBTYA, LGF, LNKD, LOCO, LOPE, MACK, MDRX, MELI, MHK, MHLD, MITT, MMI, MNST, MNTX, MRIN, MSI, MTX, MTZ, NAVG, NDLS, NFG, NNI, NOG, NUS, OEC, OLED, OREX, OUT, OVAS, PACB, PCLN, PDLI, PETX, PFMT, PGRE, PKI, POST, PRSS, PSIX, PTCT, RATE, REGI, RMAX, RPTP, RRMS, RTRX, RVNC, SEM, SEMG, SHOR, SMCI, SPXC, SSNI, SWIR, SYMC, SYRG, TASR, TCRD, TEAM, TRMR, TRUE, TSRO, TTWO, TWOU, TXMD, UBNT, UEIC, VVUS, WAIR, WEB, WIFI, WING, WTI, WTS, WTW, ZG, ZNGA
Fri, Jul. 22, 5:37 PM
Thu, May 5, 9:12 AM
- Gainers: SYNC +143%. LGCY +31%. AAWW +27%. EPE +21%. FCEL +19%. WTW +15%. DNR +14%. ZNGA +14%. CHK +13%. BCEI +12%. UNXL +12%. ARRS +10%. CRC +10%. CLMT +9%. ORIG +9%. QRVO +8%. GSV +8%. HMY +8%. VNR +7%. MEET +7%. SDRL 7%. CLR 6%. SGYP 6%. OAS 5%. REGN 5%. BABA 5%. AUY 5%.
- Losers: PTX -37%. FRSH -27%. SQNM -19%. FIT -13%. EBIO -11%. LB -10%. WFT -9%. SEAS -8%. ABC -8%. CTL -5%.
Wed, May 4, 5:37 PM
Wed, May 4, 4:16 PM
- Zynga (NASDAQ:ZNGA) is up 13.9% in after-hours trade after a break-even quarter where it edged profit expectations and grew mobile bookings substantially in a solid revenue beat.
- Advertising gains more than made up for a shortfall in game revenues. Adjusted EBITDA came in at $11M, vs. expectations for -$1.7M.
- Revenue breakout: Online game, $137.1M (down 7.4%); Advertising and other, $49.7M (up 40.6%).
- For Q2, the company's guiding to revenues of $170M-$180M (vs. $180M consensus) and non-GAAP EPS of -0.01 to break-even, vs. consensus for break-even. It's forecasting bookings of $160M-$170M and EBITDA of break-even to $5M (vs. consensus of $4.3M).
- Conference call to come at 5 p.m. ET.
- Press release
Wed, May 4, 4:06 PM
Tue, May 3, 5:35 PM
- AGO, ALDW, ALIM, ALJ, ALL, ANDE, ARCW, AREX, ARRS, ATO, AUY, AWK, AWR, BNFT, BREW, BRKR, CB, CBPO, CCRN, CDI, CECO, CENT, CF, CLR, CODI, CONE, CPE, CPSI, CSII, CSOD, CTL, CTLT, CUZ, CW, CWST, CXO, CXW, DAC, DOX, DPM, DVA, ECR, EPM, EQC, EQIX, ES, ETE, ETP, EXEL, FEIC, FICO, FIT, FLT, FLTX, FNV, FOXA, FRPT, FRSH, FRT, GDDY, GDOT, GHDX, GIL, GPOR, GTY, HABT, HASI, HDP, HIL, HIVE, HOS, HR, HRTG, HUBS, IAC, INFI, IO, IRG, JONE, KHC, KND, KONA, KTOS, KW, LGCY, LHCG, LNC, LNT, LPI, LPSN, LXU, MAA, MASI, MATX, MCHP, MCK, MED, MET, MHLD, MNR, MRO, MTRX, MTW, MUR, NCMI, NLY, NVAX, OHI, OME, ORA, OREX, OSUR, PAA, PAGP, PDLI, PE, PEIX, PHH, PNNT, PRI, PRU, QRVO, QUIK, RICE, RIG, RLJ, RLYP, RP, RRTS, RST, RYN, SBY, SKUL, SQNM, SRC, SUN, SWM, SXL, SZYM, TASR, TCAP, TEAR, THG, TLLP, TPC, TPUB, TRIP, TROX, TSLA, TSLX, TSO, TWO, VECO, VNDA, VRNS, WBMD, WFM, WFT, WGL, WMB, WMGI, WPG, WPX, WTI, WTS, WTW, XEC, XOXO, YUME, ZNGA
Wed, Mar. 2, 9:15 AM
Tue, Mar. 1, 6:31 PM
- What's next for Zynga (NASDAQ:ZNGA), currently up 8.3% in after-hours trading, now that its chief-executive revolving door has spat out founder Mark Pincus for the second time?
- As executive chairman, Pincus says he will focus on vision as well as work with the product teams, after stepping down from the CEO post he had only reassumed last April when Don Mattrick resigned. Pincus had also been CEO from 2007 to 2013.
- Putting an EA Mobile veteran like Frank Gibeau in charge seems an obvious admission that the company needs to pivot faster from its Farmville, Facebook-game origins toward mobile gaming. “He has a proven 25-year track record, having helped architect the successful turnaround of Electronic Arts," Pincus says in a letter to employees.
- Real judgment on Pincus' tenure may have to wait until a fatter pipeline of games empties out later in the year. The company pushed key titles Dawn of Titans and CSR2 first into 2016, then into late 2016 as it continued to work on social aspects.
- Zynga may expect a large gain, perhaps 2.5 to 3 times, on the sale of its headquarters in San Francisco.
- After-hours quotes have the shares at $2.34, which would be its highest point in a month.
- Previously: Mark Pincus leaving CEO post at Zynga; shares up 2.8% (Mar. 01 2016)
- Previously: Zynga up 4.1% as it mulls drawing big gain on HQ sale (Feb. 25 2016)
- Previously: Zynga -13.2%, hitting new lows after disappointing Q4 (Feb. 11 2016)
Tue, Mar. 1, 5:45 PM