5 Best Entertainment Stocks to Invest In

In this article we discuss the 5 best entertainment stocks to invest in. If you want to read our detailed analysis of these companies, go directly to the 10 Best Entertainment Stocks to Invest In.

5. Zynga Inc. (NASDAQ: ZNGA)

Number of Hedge Fund Holders: 47

Zynga Inc. (NASDAQ: ZNGA) is an electronic gaming & multimedia company based in San Francisco, California. It is ranked fifth on our list of 10 best entertainment stocks to invest in. The company’s shares have returned 0.86% to investors over the course of the past year. On May 5, Zynga Inc. (NASDAQ: ZNGA) posted earnings for the first quarter of 2021, reporting earnings per share of $0.13, beating estimates by $0.04. The revenue over the period was around $680.3 million, up 68.47% year-over-year.

At the end of the first quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $1.14 billion in Zynga Inc. (NASDAQ: ZNGA).

On May 6, BofA upgraded Zynga Inc. (NASDAQ: ZNGA) to Buy from Neutral rating with a $13.5 price target, citing “strong” Q1 result with organic growth.

Artisan Partners Limited Partnership, in their Q4 2020 investor letter, mentioned Zynga Inc. (NASDAQ: ZNGA). Here is what the fund said:

“We also added to our position in Zynga. Our multiyear investment campaign in Zynga has been based on a new management team’s ability to drive steady growth in the company’s base portfolio of games, expand margins, reinvigorate the new game development pipeline and use its strong balance sheet to acquire complementary games and studios. Shares have been pressured in recent quarters, presumably because of investor concerns about the company’s moderating growth rate and Apple’s pending new privacy policy which will make it more difficult for Zynga to both efficiently acquire new players and sell advertising in its games. We believe the company has multiple growth levers it can pull in the periods ahead, including the rollout of new games, acquisitions, further penetration into international markets and entry into new gaming categories, to name a few. Furthermore, our research suggests the Apple privacy policy change is manageable for larger mobile game developers such as Zynga. Given our strong conviction in the profit cycle, we used recent weakness to add to our position.”