Zynga stock gains as analysts cheer latest acquisition, raised outlook

Zynga Inc. ZNGA, +5.29% shares are up 4.5% in Friday morning trading after the company said it was acquiring 80% of Finnish game maker Small Giant Games. The company also upped its quarterly outlook. "Small Giant Games’ only game Empire & Puzzles is seeing very strong growth," wrote Jefferies analyst Tim O’Shea. "The game has consistently broken into the top-10 grossing game charts and looks like Zynga’s biggest game in ’19." KeyBanc Capital Markets analyst Evan Wingren said that he thinks the acquisition will be "accretive, add to Zynga’s scale, and provide another key franchise that diversifies its franchise risk." Piper Jaffray’s Michael Olson added that the company’s existing titles have also been performing better than expected. Zynga’s stock has dropped 6% so far this year, while the S&P 500 SPX, +0.69% has fallen 7.2%.

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