5 Best Stocks To Buy Under $10 According To Hedge Funds

2.  Zynga Inc. (NASDAQ:ZNGA)

Number of Hedge Fund Holders: 49

Zynga Inc. (NASDAQ:ZNGA) is a renowned developer of social games globally and is home to popular games like Farmville and Zynga Poker. The videogame industry has gained a lot of traction since the start of the COVID-19 pandemic as people adopted staying indoors and playing video games.

As of the second quarter of 2021, 49 hedge funds held stakes worth $1.27 billion in Zynga Inc. (NASDAQ:ZNGA), up from 47 in the preceding quarter. 

On October 26, Clark Lampen, an analyst at investment advisory BTIG, started coverage of Zynga Inc. (NASDAQ:ZNGA) with a Buy rating and stated the price target as $10. In a research note to investors, Lampen analyzed the company from a sales perspective and shared that Zynga’s setup for 2022 “looks strong.”

Artisan Partners Limited Partnership mentioned Zynga Inc. (NASDAQ:ZNGA) in its Q4 2020 investor letter. Here’s what the firm said:

“We also added to our position in Zynga. Our multiyear investment campaign in Zynga has been based on a new management team’s ability to drive steady growth in the company’s base portfolio of games, expand margins, reinvigorate the new game development pipeline and use its strong balance sheet to acquire complementary games and studios. Shares have been pressured in recent quarters, presumably because of investor concerns about the company’s moderating growth rate and Apple’s pending new privacy policy which will make it more difficult for Zynga to both efficiently acquire new players and sell advertising in its games. We believe the company has multiple growth levers it can pull in the periods ahead, including the rollout of new games, acquisitions, further penetration into international markets and entry into new gaming categories, to name a few. Furthermore, our research suggests the Apple privacy policy change is manageable for larger mobile game developers such as Zynga. Given our strong conviction in the profit cycle, we used recent weakness to add to our position.”