Zynga Inc (NASDAQ:ZNGA) needed some good news and got it when Comscore released its latest internet usage statistics. The company topped the list of most mobile property with the highest percentage of mobile users in the month of January. Besides the data involving the company it showed that the average user spends 3 hours on the internet. That is about 60% of the time people spend watching television. Digital time spent is rising fast and there is no slowing down in sight.
Zynga develops games that are featured in such prominent platforms as Facebook. They make apps that are well known and are responsible for one of the most popular franchises ever, Farmville. Its games focus on social networking sites but they also have selections for web based games. Mobile apps are the rage and Zynga Inc (NASDAQ:ZNGA) is looking to expand on its Farmville fame but hasn’t quite found another formula that can match the success of Farmville. The company has been facing performance issues and that has hurt the stock.
The company released soft numbers during its last earnings report. Net income was down 78% extending losses deeper than expected and its ROI shrank also. Cash flow decreased by 43% also falling to $4 million. That’s not much for a company that relies heavily on R&D to bring new games to market and update older ones. Zynga Inc (NASDAQ:ZNGA) has some games that are quickly moving up the top-50 chart for gross revenue but is in bad need of another superstar. There line up is an improvement over last year but needs to compete with strong franchises like Candy Crush. Gaining new audience statistics is a major concern as the company also tries to hold on to its current customers.
The stock has found a range but recently failed to complete a double bottom pattern. This is bearish and signals with stagnation or depreciation. There is support at$2.55 but if that is breeched there is no other decent support to count on.