Now that Zynga joins forces with Bwin’s Party Poker, are you going to buy Zynga shares or invest in the Bwin stock that is traded in the London stock exchange? Bwin shares are gaining 4.5% this morning, although they are down 2.5% since London stock market opened.
Zynga stock meanwhile is up 13% during after-hours trading in New York! Zynga earnings report came out yesterday posting $52m loss but stronger-than-expected revenue for the third quarter. Zynga also announced the partnership with Party Poker in the earnings call, offering real money online poker and casino games in UK and a buyback plan of repurchasing up to $200 million of its shares that could further increase the value of the remaining shares.
Zynga stock price however is a lot lower than the offering price of the Zynga IPO one year ago. Shareholders and investors who bought Zynga shares for up to $16 at one point haven’t been that happy, since their investment has lost more than 80% as Zynga shares plunged to $2.13 on Wednesday.
Will Zynga manage to reverse the long term downtrend by entering the gambling business? If you had read my post about the Facebook and Zynga IPO, you would have stayed away from these internet companies. Now though that Zynga stock is trading for $2.40 per share and given the positive news, we might actually see at least a short-term reversal up to maybe $3.30.
On the other hand, Party poker has seen a 33% decline in cash game traffic year on year, despite retaining its second place spot behind Pokerstars. Party will surely welcome those Zynga poker players who will decide to play poker with real money. Speaking of gambling, Bwin.Party shares are trading at £123 but you might need to take a look at the 6-year stock chart before you buy Bwin stock!
Comments (No)