Zynga (ZNGA.US) stock plunged almost 10% after mobile game-maker reported its latest quarterly results. Company lost 11 cents per share for its latest quarter, 2 cents a share smaller than analysts had expected. Revenue rose to a record $503 million (up 46% year-over-year) in the third quarter, with bookings of $628 million (up 59%). Active user numbers rose to record 31 million, with its games like “Words With Friends” gaining popularity amid the pandemic.
When it comes to the 4Q outlook, company is expecting that revenue will rise 41% year-over-year to $570 million. Zynga also predicts a net loss of $92 million in the final quarter of the year compared to a net loss of $4 million in 4Q19.
Zynga (ZNGA.US) stock launched today's session with a massive bearish price gap and is currently testing major support at $8.80, that also coincides with the upward trendline. Should a break below occur, then downward move could be extended to the $8.20 level. However if buyers will manage to regain control, then nearest resistance lies at $9.75. Source: xStation5
