4 Tech Stock Stories Noisily Closing Out the Trading Week
Zynga (NASDAQ: ZNGA): Current price $2.71
Zynga shares were downgraded Friday at Morgan Stanley from Equalweight to Underweight, and their price target was reduced from $3 to $2.60. Analyst Scott Devitt perceives an unattractive risk/reward and believes that the firm’s transition to mobile will more time and cut deeper than has been anticipated. What is more, he thinks that Zynga is being beaten by competitors in web gaming, commenting that “According to DAU estimates compiled by AppData, Zynga has been passed by competitors in web gaming and its key titles are diminishing in presence among the top Facebook games. Zynga is shifting its focus towards mobile gaming where barriers to entry are lower, which makes hit games harder to come by. Recent launches like Draw Something 2, Running With Friends, Solstice Arena, and Battlestone all appear to be quality titles, but only Running (top 10 in downloads, top 30 grossing on iOS) has shown signs of sustained traction so far.”
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