Zynga hoping to stay alive until internet gambling gets legalized in US

Zynga, creator of the famous game, FarmVille, has beaten expectations of many analysts by reporting profit of a cent on every share, last night. They were expecting to see a loss of close to 4 cents from the firm.

Despite this minor victory of sorts, the stock had a hit during after-hours trading. There was a time, when the stocks dropped below USD 3, reporting a loss of 10 percent. Investors got disappointed with the warning for this quarter. At the same time, they didn’t appreciate the drop in count of people using the online games from the firm.

Jon Najarian, an analyst, said that the firm was basically making enough efforts for staying alive so that they can have a taste of the online casino industry, which is getting legalized in US. Even though the company was not talking much about it, they did have an online casino setup in UK. Najarian said that the UK online casino was a test tube of what they are to do in US.

The reason why many believe that Zynga can hang around for a considerable while is that there is a USD 1.65 billion of cash showing in their balance sheet. They also paid off a long-term standing debt of close to USD 100 million in this month itself.

With the company determined to make spending only in gaming sector, there are high chances that they will survive for a considerable period of time and might have a chance to make the most of the legalized online US casino environment.

Tweet