Zynga Inc. (NASDAQ:ZNGA) volume and share price skyrocketed Feb. 18 sparked by news that King Digital Entertainment, the European social gaming giant best known for Candy Crush Saga, has filed a public F-1 with the U.S. Securities Exchange Commission for a planned initial public offering.
King stated that it plans to raise $500 million in the IPO. Meanwhile, Zynga hit a new 52-week high of $5.16 during intra-day trading..
Restructuring Working?
This should come as no surprise considering the volatile nature of the selling games on social networks such as Facebook (NASDAQ:FB). While Zynga has enjoyed some success in 2013 with such popular games as Zynga Poker, Farmville, and Farmville 2 still topping social-gaming charts, its quarterly revenue fell by about 30% in 2013 due to competing games. The company reported during its second quarter that it lost 39% of its active users in 2013 compared with the previous year, decreasing to 187 million.
Since then, Zynga has gone though some major restructuring, including recruiting and hiring its new CEO Don Mattrick, who served productive stints both at Microsoft Corp. (NASDAQ:MSFT) and Electronics Arts Inc. (NASDAQ:EA). Zynga also reduced its workforce by 18% when it laid off 520 workers as part of slashing $80 million dollars from its budget. It is also developing new role-playing games, which have a longer lifespan that social games, by introducing such games as Battlezone. In addition, Zynga is making a foray into online gambling games by introducing ZyngaPlusCasino and ZyngaPlusPoker in the United Kingdom.
On Feb. 20, ZNGA share price closed at $5.09, up from its share price of $5.07 cents the previous day.
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Insider Selling
In other news, there has been some insider selling at Concur Technologies Inc. (NASDAQGS: CNQR) lately.
On Feb. 18, Concur’s Executive Vice President Elena Donio sold 2,000 shares of Concur Technologies stock for a total transaction of $257,560. The executive vice president still owns 41,666 shares in the company, valued at approximately $5,365,747. The sale was disclosed in a SEC filing.
First Quarter Results
On Jan 29, the spending management solution company reported its fiscal 2014 results, which were positive.
The company reported total GAAP revenue for the first quarter of fiscal 2014 of $163.1 million. Excluding revenue from businesses that the company intends to divest, non-GAAP revenue for the first quarter of 2014 was $160.3 million, up 31% from the year-ago quarter and up 4% from the prior quarter. GAAP net loss attributable to Concur for the first quarter of fiscal 2014 was $24.2 million, or $0.43 per share. Fiscal 2014 first quarter non-GAAP pretax income was $12.4 million, or $0.21 per share.
"We kicked off fiscal 2014 with a strong first quarter in which we exceeded expectations for revenue, earnings, cash flow from operations and free cash flow. New customer growth remains very robust as more than 1,000 new customers joined the Concur family,” said Steve Singh, Chairman and CEO of Concur, in a written statement
But it wasn’t always this way.
Remember the tech bubble of 1999?
Concur, with a 52-week high of $114.32 at the time, crashed along with the market when its share price hit a bottom on Mar. 30, 2001 of 31 cents.
Overnight it became a penny stock, most investors totally wrote off.
If you have been one of the insightful ones, who invested just $1,000 into it when it hit its low, your $1,000 would have grown to $411,129 today.
Concur clawed its way back to the top because it had created and continued to improve a quality service that was in demand. Even when it was a penny stock, Concur’s basic value proposition remained solid.
Results speak loudly
In 2013, the company reported it had about 4,000 clients using its travel-and-expense management services that generated nearly $1 billion annual revenue. In a recent interview, Concur’s chief executive officer Rajeev Singh said the company is expanding its services to the consumer market.
On Feb 20, CNQR’s share price was 126.78, up 12 cents from its closing share price of $126.66 the previous day.
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Analysts’ Consensus on Sirius Positive
Of the four analysts that cover the satellite-radio provider Sirius XM Holdings Inc. (NASDAQ: SIRI), three rate it a “Strong Buy,” while one rates it a “Hold.”
Such positive ratings from analysts are subtle reminders of just how far Sirius has come since its share price bottomed at 5 cents in February of 2009.
Sirius’ strong recovery was evident in its fourth-quarter and full-year 2013 earnings reported on Feb. 4, 2014.
Strong Fourth-Quarter and 2013 Earnings
The company generated record revenue of $1.0 billion and $3.8 billion in the fourth quarter and full-year, respectively, each up 12%. Net income for the fourth quarter and full-year were $65 million and $377 million, respectively, or $0.01 and $0.06 per diluted common share, respectively.
Income from operations was $245 million and $1.0 billion in the fourth quarter and full-year 2013, respectively. Adjusted EBITDA increased 41% in the fourth quarter to a record $326 million. Full-year 2013 adjusted EBITDA was $1.17 billion, an increase of 27% from $920 million in 2012.
Potential Lawsuits
Despite a myriad of law-firm of Sirius XM for potential stockholder claims as a result of the satellite-radio investigations company’s proposed acquisition by Liberty Media Corp., its stock price is holding its own.
On Jan. 3, 2014, Liberty Media make an offer to buy Sirius for about $10.4 billion at a rate of $3.68 per share. The deal involves creating a new class of stock called Series C, adding 0.076 per share to give the company a total market value of as much as $27 billion.
Although the pending acquisition has triggered a slew of potential stockholder lawsuits, without Liberty Media, Sirius XM might not have been here today.
That’s because in 2009, Liberty Media kept Sirius XM from going bankrupt with a $530 million loan. As a result, Sirius XM has been able to build a subscriber base 25.6 million strong. It’s done so with a line-up of paid-radio choices including classical, rock, alternative, country, sports and live concerts, including the extremely-popular morning man Howard Stern serving as the company’s anchor. Moreover, having new cars equipped with XM receivers has also boosted the company’s popularity and acceptability. However, Sirius XM still faces brutal competition from such digital radio competitors as Pandora Media Inc., AOLRadio and Apple Inc.
On Feb. 20, SIRI’s share price closed at $3.60, up 3 cents from its closing price of $ 3.57 the previous day on volume of 118,952,176 shares.
Find out what could be the best investor’s move when it comes to SIRI by getting the complete report here, or by cutting and pasting the following link in your Web browser:
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