Zynga Sees an Improvement on Wall Street
The release of Zynga’s quarterly earnings indicates that the company seems to be improving. Ecommerce Times reports on Feb. 7 that shares of Zynga received a boost and reached $3. However, the quarterly earnings also indicate that growth has stalled at the company, and serious changes are still planned by the CEO.
Zynga revealed that it lost users last year because the number decreased to 298 million from 311 million. However, its quarterly earnings of $311 million surprised some analysts who expected the company to post lower numbers. Nevertheless, Zynga is still facing problems, and its modest improvements may not last long.
One area that is a key concern for Zynga is increasing competition that results in the loss of users to other gaming platforms. Analysts have pointed out that it needs to focus on the company’s mobile presence, and it is clear that Zynga plans to address this. Despite attracting millions of users on Facebook, it still faces tough competition from new apps. For example, PokerSites has reported that PokerStars has started a beta test of its gaming application on Facebook that will compete with Zynga Poker. The company still places Zynga Poker as “the fourth most popular game on Facebook,” but this may change in the future.
CEO Mark Pinkus has mentioned that Zynga will continue to focus on increasing revenue, “We saw great performance by mobile poker, so we're seeing our franchises do really well.” However, there are concerns about the stability of the company as executives leave and changes occur. Now, analysts will be carefully watching to see if the company can replicate the surprise profit it posted in its recent quarterly earnings report.