5 Stocks that Will Double In 2021

2. Zynga Inc. (NASDAQ: ZNGA)

Number of Hedge Fund Holders: 47

Zynga Inc. (NASDAQ: ZNGA) stock has offered investors returns exceeding 5.4% over the course of the past year. It is ranked second on our list of 15 stocks that will double in 2021. The firm is headquartered in California and provides social game services. On May 5, in earnings results for the first quarter, the firm reported earnings per share of -$0.02, beating estimates by $0.02.The revenue over the period was $680 million, up 68% compared to the revenue over the same period last year. 

On May 6, investment advisory Bank of America upgraded Zynga Inc. (NASDAQ: ZNGA) stock to Buy from Neutral with a price target of $13.5, appreciating the strong quarterly results posted by the firm with double digits organic growth. 

At the end of the first quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Zynga Inc. (NASDAQ: ZNGA), down from 52 in the previous quarter worth $1 billion.

In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Zynga Inc. (NASDAQ: ZNGA) was one of them. 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.”