Zynga Did Better Than Ever in Q4 and Adobe Move Workforce to Virtual Office Positions to Stay Healthy
Zynga is one of the most popular video game developers. Zynga has been doing well recently, in their most recent quarter, they did better than ever. Moreover, revenue and operating cash flow improved in the third quarter by 46%.
Now, Zynga is trading at 5.8 times revenue. Even at 5.8 this price is comparatively much cheaper than valuations of competitors. For example, Take-Two Interactive is trading at 7.1 times sales and Activision Blizzard is trading at 9.6 times sales.
With gaming increasing due to the pandemic and the evolution of expectations it’s no surprise that in 2020, revenue hit an all-time high of $1.93 billion, a massive increase over its $1.32 billion in sales in 2019.
Adobe is a unique company that is well regarded for their products that enable: editing, managing graphics, and editing pictures.
Like many companies in the technology sector, Adobe is always updating their products. For example, to adapt to the Pandemic, Adobe made pivots internally to permanently shift 50% of employees to a virtual office position, saving the company money on brick-and-mortar offices. In the past the demand of the stock has stayed healthy, as over the past 5 years the stock has gained more than 430%.
And on a larger time frames, Investors who have held the stock for the past decade have been rewarded with gains of 1,480%.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.