Zynga Upgraded From ‘Sell’ to ‘Hold’ After Disastrous Week
Following a huge decline in its share price this week, there was a little ray of hope for Zynga Inc. Friday as TheStreet Ratings upgraded it from a “sell” to “hold”.
That development comes following Zynga reporting stronger than expected earnings per share for the past quarter.
Company’s strong areas include concrete financial position with healthy debt levels along with surging profit margins. During the last fiscal year the company posted loss per share of 28 cents, lower than the 62 cents a year earlier.
Zynga shares fell by double digits over the past 48 hours.
The company's surprise profit in the first three months of this year was overshadowed by reported revenue decline, a drop in the number of users and a lower-than-expected second-quarter forecast.
Revenue fell 18 percent to $263.6 million, from $321 million.
Analysts, on average, had expected revenue of $264.5 million, according to FactSet.
Zynga shares rebounded by more than 6 percent late Friday morning.
- Aaron Goldstein, Gambling911.com
