3 Things That Could Bring Zynga Down

Things are looking up for Zynga (NASDAQ: ZNGA). After struggling for years to find its footing in the mobile games market, sales on smartphones and tablets are now growing fast enough to outpace declines for its browser-based titles, and the company has been employing a more cost-conscious development approach that's producing encouraging top- and bottom-line results. Mobile sales increased 30% year over year and accounted for 86% of sales last quarter, overall revenue climbed 15% to a three-year high, and improving operating margins suggest the company will finally be able to deliver profits on a regular basis.

Zynga's upswing appears to be poised to continue in the short term, but the company will still need to execute at a high level and improve in key areas in order to build sustainable success in the competitive mobile games market. Read on for a look at three threats that could sink the company's turnaround effort.

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Source: Fool.com