Game On! – Zynga Inc (ZNGA), Electronic Arts Inc. (EA)

If Zynga can succeed in garnering a loyal and steady user base through mobile, there could be high hopes for the company.

Zynga has a healthy cash stockpile that should allow it to run for a while, and its business model is at least breaking even.

There has been plenty of chatter that Zynga is a takeover target, but that’s never a good and sole reason for buying a stock. But a betting person might wager on better days for Zynga.

The odds appear in Zynga’s favor after the company reported an unexpected profit for Q4 2012, beating on both earnings and revenue. The gains suggest Zynga is successfully focused on its future. Shares soared more than 5% following the earnings report.

Goosing shares prior to the release was an upgrade from Bank of America to a “Buy” from an “Underperform.”

Zynga is far from out of the woods, buy it looks like the company is wisely playing the hand it’s been dealt.

If you do plan on playing with Zynga’s stock, take heed of an old Chinese proverb, “Decide on three things from the start: the rules of the game, the stakes, and quitting time.”

The article Game On! originally appeared on Fool.com and is written by Diane Alter.

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