Zynga wants to continue expanding its flagship games
According to Zynga (ZNGA), it’s planning to introduce new products to drive growth this year. Its management has declared its turnaround complete and says that it’s aiming to position itself for significant growth in 2019 and beyond. Zynga’s new games for 2019 will start arriving on the market in the second half of the year. The company says the new products will enhance its growth potential in 2020.
Even as Zynga builds new products, the company will continue to develop its flagship games, which it fondly calls its “forever franchise.” The forever franchise includes games such as Words with Friends and Zynga Poker.
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Zynga’s revenue rose 7.0% YoY
Zynga generated revenue of $907 million in 2018, an increase of 5.0% YoY (year-over-year). In the fourth quarter, Zynga reported revenue growth of 7.0% YoY to $249 million supported by the strong performance in its Mobile Games segment.
Zynga’s fourth-quarter top line performance exceeded expectations, as the company had originally guided for fourth-quarter revenue of $235 million.
Game developers put on a good show
The fourth quarter of 2018 was generally great for many major game developers and publishers. Electronic Arts (EA), Activision Blizzard (ATVI), and Glu Mobile (GLUU) reported revenue rises of 11%, 17%, and 19% YoY, respectively, in the quarter. Revenue soared close to 160% YoY at Take-Two Interactive Software (TTWO) in the quarter.
Zynga (ZNGA) exited 2018 with $581 million in cash, but the company isn't satisfied with this amount and wants to increase it.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.