Zynga's Earnings Report Sends the Stock Up. Will the Rise Continue?
Zynga (NASDAQ: ZNGA) blew away its own fourth-quarter revenue and profit estimates when it reported quarterly results last week. The San Francisco-based mobile gaming company shot higher by more than 13% the day after the report.
While the stock trades near its highest levels since the hype after its initial public offering (IPO) ran its course, some wonder how much higher it can move. Though stock price growth may pause for a time, popular franchises, improving financials, and the direction management has taken the company should keep Zynga on a long-term growth trajectory.
For the fourth quarter, the company reported net income per share under generally accepted accounting principles (GAAP) of $0.00, which beat its estimate of ($0.05). Revenue of $404 million increased 63% from the same quarter last year. The company had projected quarterly revenue of $365 million. Bookings, which included deferred revenue, came in at an adjusted $433 million in the quarter.
Source Fool.com
