Zynga Inc. (NASDAQ:ZNGA): Current price $3.47
Despite some feverishly good trading days after its CEO switch, Zynga has been reiterated by TheStreet Ratings as a Sell, with a ratings score of D. The company’s weaknesses are indicated in its poor operating cash flow, and disappointing historical performance in the shares themselves. In their report, analysts cited, in part, Zynga’s net operating cash flow having fallen to $26.45 million, or 66.44 percent, when compared year-over-year. Moreover, when compared with the industry average, the company’s growth rate is far lower. Zynga’s stock share price has performed very poorly year-over-year since 2012, and regardless of rallies, the bottom line is that it is down by 28.49 percent, which is below the performance of the S&P 500 Index. So far, investors are just not paying a lot of attention to the earnings improvements the firm has achieved during the last quarter.
SHFL Entertainment Inc. (NASDAQ:SHFL): Current price $22.82
SHFL Entertainment Inc. will be acquired by casino games maker Bally Technologies Inc., at a price of around $1.3 billion, so that the buyer can expand in Asia and Australia. The cash offer of $23.25 per share marks a 24-percent premium to SHFL’s Monday close. Slot-machine manufacturer Bally said the deal, which includes the assumption of $8 million of debt, will expand its reach and reinforce its footprint in key geographies, including China.
Baidu Inc. (NASDAQ:BIDU): Current price $106.26
On Tuesday, China’s number-one Internet search engine announced that it would purchase the app store 91 Wireless for $1.9 billion, as it endeavors to diversify beyond its mainstay search business, and ramp up its presence in the mobile sector. This proposed acquisition comes after Baidu’s announcement in May that it would buy the online video business of PPS Net TV for $370 million. Further, Baidu wants to fend off its rival Qihoo 360, which has been chopping away at its search market share since entering the scene in 2012, and also has a competitive app store.