Social game developer Zynga Inc. (NASDAQ: ZNGA) recently announced its partnership with blockchain solutions developer for the gaming industry, Forte to explore opportunities for blockchain applications in the industry. The terms of the partnership have not been disclosed.
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Following the news, shares of the company gained marginally to close at $6.48 in the extended trade.
Strategic Impact
With over 3 billion players and annual revenues of about $180 billion, the gaming industry is an exciting one with bright prospects for growth in the future.
Taking this into account, Zynga and Forte’s partnership will be looking to harness the power of blockchain technology and create new economic opportunities for gamers, developers and their partners.
Management Commentary
Vice President of Blockchain Gaming at Zynga, Matt Wolf, said “Our goal is to bring a new level of quality and fun into Web3 and blockchain games, while also providing a safe and trusted ecosystem that will keep our valued players and communities entertained for years to come. We’re excited to partner with Forte because of the team’s long‐term vision and approach to blockchain solutions and web3 development.”
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Analyst Ratings
Recently, Robert W. Baird analyst Colin Sebastian reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $14 to $10, which implies upside potential of 54.3% from current levels.
Consensus among analysts is a Strong Buy based on 12 Buys and 1 Hold. The average Zynga stock projections of $10.58 implies upside potential of 63.3% from current levels. Shares have declined 35.1% over the past year.
TipRanks Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Zynga’s performance this quarter.
According to the tool, the Zynga website recorded a 20.26% monthly rise in global visits in November, compared to the same period last year. Moreover, year-to-date, website traffic rose 72.57%, compared to the previous year.
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