Zynga Stock Has a Lot to Prove on Tuesday
The game's afoot for Zynga (NASDAQ: ZNGA). The casual and social gaming giant behind FarmVille, Zynga Poker, and Words With Friends is rolling. The stock is within 2% of revisiting the three-year highs it hit in late September, and a new multiyear high is certainly within reach if Zynga comes through with strong financial results this week.
Zynga reports its quarterly numbers shortly after Tuesday's market close, and it tends to move on earnings. The stock rose a modest 3% the day after posting its second-quarter results in early August. Zynga soared nearly 13% higher the day following its first-quarter announcement three months before that, rising 2.3% the period before that. String the upbeat market reactions together, and you have a stock that could reasonably hit a fresh three-year high in Tuesday afternoon's after-hours trading. You have to go back to the second quarter of last year to find the last time that the stock declined the day after offering up a financial report. However, that 7% slide is a painful reminder that volatility cuts both ways. Momentum is on Zynga's side, but like the fickle nature of its mobile gamers, it's something that can turn in a hurry.
Source: Fool.com
