According to Bloomberg, there may be a gaming company interested in acquiring Zynga. The mere mention of this potential was enough to start a price surge on Zynga stock today, bringing a spotlight to this cheap stock among cheap stocks.
Cheap Stocks: Zynga Stock
Zynga (NASDAQ:ZNGA) saw a 13% increase following the acquisition rumor. At the time of writing, ZNGA shares are selling for $4.36. This is a massive jump from today’s opening valuation of $3.88, but still keeps Zynga in the cheap stock range.
The online game developer has received a takeover interest from a rival, but who this might be remains to be seen.
There was a climb of an even 50 cents by Zynga stock to $4.39 as of mid-afternoon and interestingly, today’s move represents the biggest climb for Zynga since early 2014.
Yes, this cheap stock has been stagnating in the last few years.
Gaming Suitor
The Bloomberg report suggested that a “gaming suitor” was interested in acquiring the San Francisco-based company. But who could this be?
For now, the news has lifted the struggling stock. Zynga stock sold for $10 at its IPO back in 2011, however, it has not topped even half of that amount since 2014, making it a cheap stock that investors weren’t entirely interested in.
But from small acorns grow the biggest trees. This stock is still up 6.3% on the year and showcased impressive Q2 results, so might there be exciting ventures on the horizon?
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Q2 Results
Zynga released its Q2 results on August 1st and the cheap stock had beaten analyst estimates. It reported a revenue of $217.05 million during the quarter and this was much greater than analysts’ expectations of $212.62 million. Perhaps this has also helped Zynga stock to rise today?
The company is best known for its popular and addictive social media game, Farmville. This is what the company does best; it develops, markets, and operates social games that are played on iOS and Android mobile platforms, as well as on social networking sites like Facebook.
Zynga Inc also gains substantial revenue from its advertising services such as mobile and display ads.
Do you think Zynga stock will continue to grow from this rumor? Or is it just hype? There could be major potential with this cheap stock. What do you think?
Featured Image: Depositphotos/© albund
