Zynga stock (NASDAQ:ZNGA) has been on the rise in recent months. In fact, shares of the mobile gaming company have literally doubled since the beginning of the year.
Looking at the chart, we see a steady climb with no major dips to report. Now, the company’s current price of $6.19 marks a five-year high for the company, but it’s hard to imagine the momentum is going to stop any time soon.
The mobile gaming industry has become a tough sector to operate in, mainly because it is over-crowded. Stiff competition coupled with the myriad of available games means vying for the attention of millions of smartphone users is far more difficult than it once was.
Once a hot sector when the smartphone craze first hit us, mobile gaming has lost demand in recent years. Further, with a sea of games to jump between, keeping users committed became a real issue for companies.
But Zynga has three games currently out there which seem to be holding attention. They include Zynga’s Words with Friends, CSR2, and, in particular, Merge Dragons.
Zynga Stock – Merge Dragons
Zynga acquired Merge Dragons founder Gram Games for $250 million USD in May 2018. Now, one year on, the company is reaping the rewards of that acquisition and this may be the key driving factor for its stocks climb in 2019.
The company’s latest financials showed that Merge Dragons has outperformed expectations and represents 18% of Zynga’s online bookings revenue in Q1. Further, bookings for the title alone grew 64% in the quarter, having shown the same demand in Q4 2018.
Zynga Stock Soaring
With one game, a mobile gaming company can soar. Zynga did this before with the success of its FarmVille franchise. Will Merge Dragons be as successful if not more so? As long as the game remains popular these shares are likely to continue to climb.
And bear in mind, Zynga is making a killing on Ad revenue now. Popularity for a game brings with it the potential to advertise to its millions of players. Zynga, in particular, has recorded robust advertising revenue in recent months.
Is Zynga stock on your radar?
Featured Image: Deposit Photos/vectorfusionart