Gaming tech stocks on the move

Nasdaq closes at the highest level since March 2000. A great tech rally today, but not all of the tech stocks rallied. I`ll talk about two gaming stocks today were one is up today and the other one is down. One of them will rally tomorrow, and one of the will plunge. Let`s talk about the good news first.

King Digital Entertainment pls (KING) is up 4,24% right now. The stock is up 18,78% AHT, trading at $14,74, and will probably rally tomorrow.

Candy Crush Saga

KING is an interactive entertainment company for the mobile world. The company`s games include Candy Crush Saga, Pet Rescue Saga, Farm Heroes Saga, Papa Pear Saga and Bubble Witch Saga. The company makes casual games, which appeal to a wide and growing audience.

Users access its games for free anywhere and anytime they wish to, either on their mobile devices, through social networks or via its Websites, king.com. The combination of wide game appeal, accessibility, and its experience. The company operates in developing and monetizing casual online and mobile games.

As of December 31, 2013, the company had a massive network of 324 million monthly users and a track record of long-term retention driven by game longevity and ability to cross-promote new games to its audience.

The Company announced today it`s buying Z2Live for $45 million in cash and up to $105 million in earn-outs. They are six months removed from announcing a $0,47 per share dividend and the acquisition of strategy game developer Nonstop Games. They stated it`s paying a $0,94 per share special dividend (it`s expected to be paid on March 24 bo shareholders on record as of March 4).

Earnings per share came in at $0,57 and beats Q4 estimates by $0,10. Revenue is down 7% Y/Y, and came in at $559,2 million and beats the estimates by $39,27 million. It seems like the investors love the numbers today.

We can unfortunately not say the same about Zynga (ZNGA).

The stock is down -5,34% and is down -12,03% AHT right now, trading at $2,66. It seems like the stock will plunge tomorrow. What`s really going on in Zynga at the moment?

Zynga Inc is another gaming company. They are a provider of social game services. The company develops, markets and operates social games as live services played over the internet, social networking sites and mobile platforms. The company`s games are accessible on Facebook and other social networks, mobile platforms and Zynga.com.

According to AppData, as of December 31, 2013, the company had five of the top 10 games on Facebook based on DAU`s. The company`s players are engaged, with the company`s games being played by 27 million DAU`s, across the world, as of December 31, 2013.

The Company has many of the online social games, including the FarmVille, words with friends and Zynga Poker franchises, Bubble Safari, ShefVille, and Draw Something. During the three months ended December 31, 2013, the Company had approximately 1,3 million MUP`s.

Q4 Earnings per share came in at $0,00 in line. Bookings of $182,4 million misses by $18,71 million. Up +24,4% Y/Y. Revenue is reported to be $192,55 million, while analysts expected $201,11 million in Q4. Zynga posted a non-GAAP loss of 5 cents compared to 3 cents per share at the same quarter last year with $176,36 million in revenue.

Zynga reported a 120% increase in mobile bookings YoY in Q4, while 60% of the company`s total bookings were mobile bookings. And increase from last year`s 34% in Q4. They also recorded advertising results during the quarter, marking a 41% quarter over quarter ad bookings increase, excluding licensing developer payments.

Zynga also announced that it is closing its China studio and 71 employees will be affected by that. It will save them about $7 million. Their outlook for 2015 is net losses per share of between 7 cents and 6 cents and non-GAAP net losses of between 3 cents and 2 cents pe share.

Zynga need to do something, while King remain a King.

 


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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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