Zynga's shares rise 14 percent ahead of earnings report next week
By Malathi Nayak
SAN FRANCISCO (Reuters) - Zynga Inc's stock rose 14 percent on Monday as investors grew more confident that the social games developer behind "FarmVille" and "Mafia Wars" will deliver a solid set of quarterly results next week.
Its shares ended trading at $2.84, up 35 cents
Zynga reports quarterly results next Monday. In October, it raised the lower end of its 2012 earnings forecast and also announced a $200 million share buyback plan and a new partnership with British company bwin.party to offer online real-money gambling.
Last month, it put in a preliminary application to run real-money gambling games in Nevada.
Analysts said there was no news that caused the spike
Arvind Bhatia, an analyst at Sterne Agee, said, "Outside of Apple, it feels a little bit like we're in a little bit of bull market in tech. A lot tech memes are up even without any news. This one was perhaps underowned and maybe that's why people are saying in 2013 that's one they want to own.
"Volume is three times the normal volume and stock is up 13 percent and that's clearly telling you somebody's buying."
"They scheduled an earnings call for next Tuesday and haven't preannounced, so perhaps investors are feeling good about the quarter," said Wedbush Securities analyst Michael Pachter. Continued...