Boston, MA 06/12/2014 (wallstreetpr) – Provider of social game services Zynga Inc (NASDAQ:ZNGA) shares suffered in the current month with different brokerages offering various opinions even as the company is witnessing its executives leaving the company in the midst of a turnaround. This leads to the question whether the stock can rebound or will fall further.
Stock Rebound
Shares of the company witnessed a drop of 7.8% in the current month of June alone based on the closing price of June 11. The stock had hit a yearly high price of $5.89 on March 11 during the intra-day trading. From then on, the slide started slowly but steadily with a loss of 13.75% within a span of ten days time based on the closing of March 20.
There was nothing that could stop the further slide in the share price of Zynga Inc (NASDAQ:ZNGA). The closing price of June 11 suggests that the stock had dropped as much as 46% since reaching yearly high on March 11, i.e. within a gap of three months time.
Things had gone for the worst on June 5 when as much as 152.1 million shares changed hands dragging the stock as much as 20.9% during the intra-day trading. The reason for such a drubbing was that its CEO Mark Pincus failed to enthuse the confidence in the stock when he was interviewed during the conference of Bank of America Corp (NYSE:BAC) Merrill Lynch Global Technology.
However, shares of the gaming company have rebounded by 16.5% from the low of $2.73 recorded on June 5. It happened after a brokerage met Zynga’s CFO and offered its outlook.
UBS Rates Buy
Investment advisor UBS analyst met the company’s new CFO David Lee and rated the stock with a Buy. The analyst sounded upbeat on the company’s medium, as well as, the long-term outlook. The brokerage viewed that its core investment thesis, which includes improved bookings uptick, margin leverage from cost cutting or growth prospects, and greater focus on mobile, is in intact.
UBS expects Zynga to either top or raise story henceforth as it believes that Zynga Inc (NASDAQ:ZNGA) is committed to meeting its current year outlook besides integrating its new acquisition.
