Stock Prices for Zynga Have Just Experienced a Drop
As per the latest reports, the share prices for Zynga have experienced a drop. The data shows that the prices for the Zynga shares have experienced a drop on Friday, August 6, 2021. It has happened because the analysts have gone ahead and updated the price targets for the company.
According to the reports, the stock prices for Zynga have been cut down by the analysts at Wall Street. The reason behind the analysts cutting down on the price for its stocks is due to low bookings. Analysts have revealed that the subscription for mobile video games powered by Zynga has dropped.
This is the reason why the analysts at Wall Street have gone ahead and cut down the targets for the prices of Zynga. The company is reportedly not doing too well it used to do in the past and it is not observing many subscriptions from the users.
While the majority of the analysts cut down on the stock price targets, only three analysts did not make changes to their estimates on the stock price targets.
On Friday, August 6, 2021, the stock prices for the company experienced an 18% drop, and the company shares traded at a price of $8.03 per share. When it comes to figures from the last six months, the share prices for the company have experienced a 27% drop.
As a result of the company’s share price drop, the analysts have cut down the price target for the company. Even the analysts from Barclays shared their new estimates that have also been lowered. According to reports, the target for the prices of Barclays has been reduced from $14 to $12.
The major reason behind the recent lack of bookings is the recent privacy changes that have been implemented by Apple. Apart from that, there are other long-term factors that have resulted in a loss for the company.
The analysts have stated that some of their major games known as Zynga Poker, Words With Friends, and Rollic have performed really well. However, the user pay for the products of the company has been set by the analysts to a lower-than-expected figure.
As a result of the slowdown of the advertisements on the mobile applications, the analyst predicted that the price of the share would be somewhere between $11 and $14.
The analysts have estimated that the results for Zynga for the second quarter of 2021 were lower than what the analysts had expected. Although the company is experiencing a downtrend, it is still very attractive for users.
Despite the bullish views from the analysts, they have still predicted that the share prices for the company would be lower. An analyzing firm going by the name KeyBanc has gone ahead and trimmed the share prices for the company down to $11.50 per share from $13.50.