With analysts expressing fresh disappointment with the new slate of games introduced by Zynga Inc. last afternoon, the stocks of the firm slipped further on Wednesday.
While some other experts offsetted the negative comments coming through by giving a buy rating and a target price of $8.50 to the stock. They are of the opinion that the current pricing of the stock doesn’t reflect the strategic valuation of the stock with meaningful revenues coming from Facebook and it still has a potential of launching a fresh series of hit games.
The shares were trading down by 1 % at $5.71 , this after the shares lost as much as 5 % on the conclusion of the media event on Tuesday at company headquarters.
On the event venue, Zynga had announced a large variety of new games in the likes of “ChefVille” and “The Ville” which are in line with its popular Facebook games “Cityville” and “Farmville”. The firm will also be launching “matching the friends” on mobile devices and “elite stocks” in the casino line.
The media day definitely came as a big disappointment for the company and there are very few factors that could prove to be a catalyst to the stock of the firm in the near future.
The presentation of the cross-platform play using the Zynga’s Friends network proved to be underwhelming. The lack of no new announcements around on real-money gambling also left a lot of investors disappointed.
The company has made no new efforts in addressing the investor concerns but still believes in under-valuation of shares given the Q2 results are expected to be solid. The incumbency factor is its largest advantage, with the largest platform it has enables it in launching more games and launching them quickly as compared to its peers. With no large competition that it faces , the chances of it getting dethroned in near future are also not many.