UBS Focuses on Zynga Turnaround, Not Volatility

On June 9th analysts at UBS hosted a dinner with Zynga ZNGA CFO David Lee and came away remaining constructive on both the company's mid and long-term. According to the UBS team, Zynga's management is focused on:
  • Executing fiscal year 2014 guidance
  • Integration of NaturalMotion
  • Balancing he cost of mobile game franchise creation and marketing costs to maximize the life long value of the franchise
The analysts wrote, "We believe our core investment case (improved bookings growth, margin leverage from growth/cost cuts, & greater mobile focus) remains intact, and we expect Zynga to remain a beat/raise story going forward." Following the release of the UBS note shares of Zynga are trading up just under 7 percent in today's trading.
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