Is Zynga (ZNGA) A Worthy Stock Investment?

ClearBridge Investments, an investment management firm, published its “Mid Cap Growth Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. During the third quarter, the ClearBridge Mid Cap Growth Strategy outperformed the benchmark Russell Midcap Growth Index. On an absolute basis, the Strategy had gains across seven of the 10 sectors in which it was invested during the quarter (out of 11 sectors total), with the IT and health care sectors the leading contributors. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

ClearBridge Mid Cap Growth Strategy, in its Q3 2021 investor letter, mentioned Zynga Inc. (NASDAQ: ZNGA) and discussed its stance on the firm. Zynga Inc. is a San Francisco, California-based social game developer with a $7.0 billion market capitalization. ZNGA delivered a -1.25% return since the beginning of the year, while its 12-month returns are down by -35.77%. The stock closed at $6.32 per share on January 04, 2022.

Here is what ClearBridge Mid Cap Growth Strategy has to say about Zynga Inc. in its Q3 2021 investor letter:

“A handful of our rapid growers hit tough earnings comparisons over the summer after experiencing a surge in demand in the second quarter of 2020 as companies moved to remote work and consumers were confined to their homes. Zynga, which develops games played on social and mobile platforms, experienced a significant uptick in new customers last year but has not seen as much retention and gaming usage as the economy has reopened.”

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Based on our calculations, Zynga Inc. (NASDAQ: ZNGA) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. ZNGA was in 52 hedge fund portfolios at the end of the third quarter of 2021, compared to 49 funds in the previous quarter. Zynga Inc. (NASDAQ: ZNGA) delivered a -13.19% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on ZNGA in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.