Zynga Inc (ZNGA): Rising From the Ashes

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On the other hand, Facebook has moved beyond its relationship with Zynga Inc (NASDAQ:ZNGA). The company isn’t interested in a long-term relationship, but is inviting different games from other developers and will try to figure out a platform for them. According to AppData, King.com has overtaken Zynga’s position, with three of its games making space in Facebook’s top 10 for January, 2013. Moreover, it’s bringing two more games to this social network to continue the exceptional growth. Around one in every five Facebook user plays games on the network. Therefore, gaming remains one of the most attractive opportunities for the company to cash-in. Facebook is aiming at 10 or more graphic-rich games with third-party developers in 2013, which will bring additional revenue opportunities.

Bottom line

There are various positive signs indicating Zynga stock might rebound, but it’s in the early stages. As far as the gambling concept is concerned, this could be the next big thing for the company in terms of revenue potential, and bringing back the gala time. Moreover, if online gambling ever becomes legal in the U.S., Zynga Inc (NASDAQ:ZNGA) could have more cash flow opportunities. I feel, considering the long-term growth factors for the company, the current level offers a compelling opportunity for the investors to make an entry into the stock. I recommend this stock as a buy for a long-term investment.

Madhu Dube has no position in any stocks mentioned. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook.

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