Zynga Inc (NASDAQ:ZNGA) gained more than 2% in the last session as the next few months look promising for the company. It released the first look of its very ambitious game “Dawn of Titans” and the reaction so far has been good enough. Natural Motion, merged with Zynga Inc (NASDAQ:ZNGA) in 2014, entered the mobile action strategy category with this game.
Zynga Inc (NASDAQ:ZNGA) plans to test the game, keeping it in various geo-lock phases in the next few months and improve the entire experience with continuous feedback. They plan to release the full version of the game later this year. If they are successful at creating so complex an experience with everything controlled with the fingertips, it may turn out to be a huge success for the company in the coming years on a sustainable basis.
Another very important front for the company is Sports betting, which if legalized, may turn out to be a money machine for the company. It is already assumed that Sports betting has a huge momentum behind it and the probability of it getting legalized is getting higher every month. Whenever that takes place, a company like Zynga Inc (NASDAQ:ZNGA) with an edge in technology should grab a major share of the market.
Technically, the charts show a base building exercise for the last few years. The price action in the last 6 months shows a contraction as well, suggesting a collapse in volatility and an impending huge trending move in the next few months. Currently the stock is wandering about in a tight range of $2-$3. Investors may decide to accumulate the stock near $2.00-15 on any dip or enter the stock on a breakout above $2.80-$3.00.
With the volume shrinking with the sideways price action, staying away from the stock in the middle portion of the range could be a prudent action.