The Zynga (NASDAQ:ZNGA) penny stock is selling for $3.61 USD at the time of writing. Down 2.7% on the day, Zynga has had a rocky winter so far.
It looked to be hitting new highs in October but then experienced an almighty crash from $4.36 to $3.14 across three-weeks.
Penny Stocks: Zynga
This penny stock just can’t seem to climb back to the highs of 2011 and 2012, when ZNGA stock traded for over $13.
Despite being considered a giant in the online and mobile video-game world, with key offerings like FarmVille, which put Zynga on the map, the video game sector has brought the company many ups and downs over the years.
However, this has been the year for fixing, and growth is around the corner.
The company looks to be making all the right moves, and during the summer it signed a smart licensing deal with Disney (NYSE:DIS). This deal meant it could develop games based on the Star Wars franchise and as you can imagine, the penny stock erupted on the news.
The company’s current core games are ‘CSR Racing 2,’ ‘Words With Friends,’ and ‘Zynga Poker.’ And aside from the Star Wars franchise, the company has eight new games in development. 2019/2020 could be the true resurgence years for Zynga, as three of these new games will launch in the latter half of 2019.
According to Macquarie analyst Benjamin Schachter:
“The new management team at Zynga has turned the business around over the past two years, and operationally, has put Zynga in the best position it’s been in for a very, very long time.”
Now Zynga looks set to grow its business in 2019. Where it once had to fix its ailing numbers, the company is in a prime position to increase dramatically. Of course, the ZNGA penny stock is expected to go with it.
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