3 Buzzing Social Media Stocks: Zynga’s Addition to Its Arsenal, Facebook Tries Out New Revenue Channels, and Groupon Rides an Upgrade
Zynga (NASDAQ:ZNGA): Still buoyed by the news that Microsoft’s (NASDAQ:MSFT) Xbox division leader, Don Mattrick, will be taking up a high-profile position at Zynga, investors are packing on significant share gains for the second day in a row. Jim Cramer weighed in, saying: “[$1.6 billion] in cash for a [$2.4 billion] market cap with a new CEO — that seems pretty hopeful. I am mindful about how well GRPN did after sacking Mason.” Fast Company points out that Mattrick was “the force behind The Sims” at Electronic Arts, and championed the Kinect at Microsoft.
Facebook (NASDAQ:FB): In efforts to continuously expand its monetization opportunities, Facebook might be looking at game publishing as yet another channel. The site is reportedly ”working with a handful of small mobile game developers” to promote its titles through mobile ads in exchange for a revenue cut. While Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG) control the world’s two major smartphone app stores and already take a 30 percent stipend from digital transactions, Facebook app install ads act as another channel for revenue growth.
Groupon (NASDAQ:GRPN): A bullish note and initiation of coverage from Wunderlich has helped Groupon maintain its stock momentum. The firm views Groupon “as a marketing company for local businesses that has been transitioning away from the daily deals business model.” Wunderlich makes the case that its transition to “offering a deal bank of discounted goods and services to browse” ultimately makes it more valuable to customers and sellers.