Monday, September 26, 2022

3 Video Game Stocks That are Better Than Zynga By StockNews


© Reuters. 3 Video Game Stocks That are Better Than Zynga

Even though the demand for video games continues to rise, gaming services provider Zynga Inc . (NASDAQ:) has been struggling to expand its market position due to its poor financial health. In contrast, Activision Blizzard (ATVI), Take-Two (NASDAQ:) Interactive Software (TTWO), and Gravity (GRVY) have been steadily improving their services to keep up with gaming trends. So, we believe these companies are well-positioned to witness solid momentum in the near term. Let’s take a closer look at these names.The video-gaming industry has seen a surge in demand over the past year, thanks to the pandemic-driven remote lifestyle. The improvement in internet services, easy access to online gaming, and rising disposable income are projected to keep the industry’s growth prospects upbeat in the coming years. Indeed, the global gaming market is expected to reach $287.1 billion by 2026, registering a 9.24% CAGR.

However, gaming services provider Zynga Inc. (ZNGA) has not been able to maintain its market position of late. The company recorded a $5.5 million operating loss and a $23 million net loss in the first quarter of 2021. Over the past month, the stock’s price has declined 7.8%. In addition to that, the company’s multiple acquisitions over the past few quarters could significantly increase its expenses and drain its cash reserves.

Meanwhile, other companies in this space have been able to capitalize on the industry tailwinds by quickly adapting to changing customer preferences for video gaming. Specifically, we believe Activision Blizzard Inc. (NASDAQ:), Take-Two Interactive Software Inc. (TTWO), and Gravity Co. (GRVY) are better bets than ZNGA, given their tremendous growth prospects and expanded capabilities.

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