Is Zynga heading in the right direction?

The company goes against the grain of the Nasdaq's fall and gets an analyst upgrade. Could it finally see its day in the sun?

By Motley Fool Investor Beat Apr 11, 2014 3:59PM
Shares of Zynga (ZNGA) were seeing a boost Friday after being upgraded to "equal weight" by Morgan Stanley. This has the game maker bucking the trend that has dogged the Nasdaq Composite index of other tech stocks, which has seen a considerable decline over the past few months.

In this video from Friday's Stock of the Day, Motley Fool analyst Jamal Carnette discusses why he likes some of the moves Zynga is making at the moment. The company just named David Lee as its new CFO, a sign that the company's new CEO, Don Mattrick, is steering the company in a new direction, away from where the company sat under the leadership of former CEO Mark Pincus.
So with the upgrade and the shake-up in leadership, could Zynga now be a buy? Jamal doesn't think so, at least not yet. He still has doubts about the company's monetization strategy, and doesn't see this as the type of company with a strong brand and wide moat that he personally would prefer to invest in. Credit: © Paul Sakuma/AP

Caption: The Zynga logo displayed at their headquarters in San Francisco

But, he likes the moves the company is making, and thinks this could be a sign that it's at least heading in the right direction.

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Tags: ZNGA
3Comments
Apr 12, 2014 6:34AM
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These goofy virtual business platform stocks aren't getting any commentary because no one is interested in them. Technology has been exploited so outrageously that it threatens our society by choking jobs, making hollow wealth and/or is obnoxious. This is just another unsustainable racket that people won't remember in a few years. 
Noteworthy... the article itself only identifies two employees-- a CFO and a CEO. A bookkeeper and a straw executive. America needs a whole lot less of that and a whole lot more enterprise people who create sustainability, recover the careers of prosperity or replace them with new ones that do work, require competence and offer family-sustaining wages to the masses, with benefits.  Can't do it? Screw it. Who needs you?
Apr 13, 2014 11:27AM
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I like that the IRS can barely audit anyone (not enough staff) and can't respond to inquiries. Do I like it because it foretells eminent failure? Yes. By this time next year, those who manage to get elected will be headlong in impeachment proceedings and those remaining in Office will be dying from the relentless pressure. The original issue was-- financial wrangling and tyranny. Wealth will do what it takes to stay on top because they are incapable of normalcy. We created "globalization" then sent jobs overseas that brought Americans to their knees. There was the systematic mass termination, engineered collapse of the housing market, rise of the college degree as a prerequisite for every job, and the entire racket that started with redesigning the currency, building faster printing presses and driving inflation through fiat money diluting the real thing. 
Some tie this directly back to Obama's inauguration but 1997 is the real starting date. 17 years of foundation destruction. ZERO chance now of falling back on viability-- it's old, sick or forced to live destitute. Will the future recognize-- the more we automate- the more we evaporate? Tech-- is the train wreck but the REAL pain begins once the survivors emerge from the derailed train. Leave your i-Phone on board.  
Apr 12, 2014 2:55PM
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Raise your periscopes out of your Hollows. [We have.] Watch to see if May comes early this year;  If it does, we may "Sell in April and go away." The market is getting delinquent.

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