Why Amazon.com, Inc (AMZN) Drops and Zynga Inc (ZNGA) Soars

-

Amazon.com, Inc (NASDAQ:AMZN) declined significantly on Friday as investors were concerned about the weak guidance issued by the e-commerce giant for the current quarter.

The stock price of Amazon.com, Inc (NASDAQ:AMZN) dropped more than 11% to $358.69 per share on Friday. The stock previously closed at $4.03.01 per share.

Amazon issues lower guidance

The decline in the stock value of the e-commerce giant was primarily driven by its estimated potential losses this quarter. Amazon.com, Inc (NASDAQ:AMZN) projected that it might deliver operating results in the range of $200 million losses to $200 million profit.

Investors were also concerned about the spending habits of the e-commerce giant, which could offset potential revenue from its planned membership fee increase in Amazon Prime.

Yesterday, Amazon.com, Inc (NASDAQ:AMZN) indicated its plan to increase its Amazon Prime membership fee by $20 to $40 in the United States due to increasing fuel and transportation costs. Analysts estimated that the increase could generate additional $500 million to $1 billion revenue for the company.

Doug Anumth, analyst at JP Morgan opined that the e-commerce giant will likely re-invest some of its additional revenue from Amazon Prime. According to him,

JP Morgan analyst, Doug Anmuth commented, “While the increase in Prime pricing appears to be a positive for margin in the near term. We believe Amazon is likely to re-invest some of the additional shipping revenue to increase capacity.”

According to investment risk monitoring firm Smartstops.net, Amazon.com, Inc (NASDAQ:AMZN) entered the elevated risk level when its shares started trading around $384.30 per share. According to the firm, investors who pulled out their investment in the company at this level saved $22.80 per share.

Zynga benefited from NaturalMotion deal

On the other hand, the stock price of Zynga, Inc (NASDAQ:ZNGA) surprisingly skyrocketed 23% to $4.39 per despite reporting that its monthly active users declined from $298 million to 112 million in the fourth quarter, and it is eliminating 15% or 314 employees. Zynga, Inc (NASDAQ:ZNGA).

The online video gaming company also reported that its fourth revenue declined 43% to $176 million and it recorded a net loss of $25 million.

Investors ignored these negative figures and focused their attention on the transaction of Zynga, Inc (NASDAQ:ZNGA) to acquire NaturalMotion for $527 to boost its effort in developing games for mobile devices. The increase in the stock value of the company demonstrates that investors are confident in the current mobile monetization strategy of the online video gaming company under its new CEO Don Mattrick.

“NaturalMotion expands Zynga’s creative pipeline, accelerates our mobile growth, and brings next-generation technology and tools to Zynga that will fast-track our ability to deliver consumers more hit games,” according to the company.

According to Smarstop.net, Zynga, Inc (NASDAQ:AMZN) has a normal risk level.

Avatar
Marie Cabural
Marie holds a Bachelors Degree in Mass Communication. She has an extensive experience in Journalism. Marie started in the industry in high school and her forte is news and editorial writing. She previously worked as a news writer and radio program producer at Nation Broadcasting Corporation (NBC) in the Philippines. She has also experience in advertising, events management, and marketing. She was a former Young Ambassador of Goodwill to the 26th Ship for Southeast Asian Youth Program (SSEAYP). She also writes for ICANNWiki, ValueWalk, and the The Motley Fool Blog Network. You can contact Marie [email protected]

Share this article

Recent posts

8 Best Horror Movies to Watch with Friends

Sometimes it is difficult to choose a movie, especially when you are with your friends. However, if we decide to bet on a specific...

Should You Let Your Child Play Contact Sports? – 2020 Guide

In the past decade, we’ve learned a lot more about the potential risks of contact sports, but that’s mostly focused on college and professional...

6 Benefits of Investing in Residential Mortgage-Backed Securities

Have you ever considered investing in residential mortgage-backed securities (RMBS)? If not, you’re missing out on a lucrative opportunity. What is residential mortgage-backed security? Investopedia explains...

Best Double Sided Suction Cups with Screw Sucker Pad

Suction cups are used for a variety of things. They’re vital for being used as holders and hangers of various things in the home,...

Ways to Create a Private Backyard Paradise

Creating decorative backyard tricks with your own hands from scrap materials, you should observe the following conditions: mandatory presence in the design of a...

Popular categories

Recent comments

rayschoon.marsfet.co.nl on How to manage your PPC campaign
https://usahealthreports.blogspot.Com on The future is here with Proven Skincare
Dale Goodman on Yukon Men Cancelled?
Ryan wants more Korra kicking ass. Varrick is bad ass!! on The Legend Of Korra Season 5 Release Date, News and Updates
Guess I'll just go jump off a duck. on Aoharu x Machinegun Season 2 Release Date
lillian bradley-gares on Yukon Men Season 7 Latest News
human lovers suck on Zootopia 2 Sequel Confirmed
Sharon Genth on Yukon Men Cancelled?
Yessenia Martínez Martínez on Taxi Brooklyn Season 2 release date and more!
crysostomos haloftis on Cowboys To Bring Back Dez Bryant?
Randolph Johnson on Cowboys To Bring Back Dez Bryant?
Matthew Brooks Brown on Cowboys To Bring Back Dez Bryant?
Charles T DeLattre on Cowboys To Bring Back Dez Bryant?
Wojciech Oszczakiewicz on Top 5 Worst Finishers Of All Time
Bill carpenter on Counting Cars Cancelled?
Karen on No Gentleman
jan ronk on No Gentleman
Vcoutelier on No Gentleman
Shanna on No Gentleman
bily gilliam on Zootopia 2 Sequel Confirmed
Barbara on No Gentleman
F. Hawker on No Gentleman
Patrick Charles Pineda on Mr. Pickles – Season 3 Release Date
David Woodcock on River Season 2 Release Date
David Gabriel Taylor on Seraph of the end Season 3 Release Date
Lieutenant BaconWaffles on Beetlejuice 2 Release Date
Lana Patrizia Nahapetian on Junjou Romantica Season 4 Latest News
John Knehans on Counting Cars Cancelled?
Crusty weave on Zootopia 2 Sequel Confirmed
Prince Yohanan Ben Yahudah on Colin Kaepernick in Dallas Cowboys?
Anata no Tomodachi on Trinity Seven Season 2: Release Date
Awesome1pc2 Ananymous on SVTFOE season 3 release date
LighthawkDemon on Zootopia 2 Sequel Confirmed
Robert Presti Sr on Counting Cars Cancelled?
James STanley on SVTFOE season 3 release date
Phương Phiêu Diêu on Barakamon Season 2 Release Date
𝕲𝖍𝖔𝖚𝖑 on Re:Zero Season 2 Air Date and Spoilers
ÃᖇᑭᗴᎶᎶᎥØØℱβŁỮ€ŞŤ€ᗴŁ✔ᶰᵉᵏᵒᶠᶤᵉᵈ on High School DxD Season 4 – Updates, Spoilers, Air Date
Central Intelligence Agency on Highschool of The Dead Season 2 Release Date
Senator D. Plorable (I-USA) on Windows 11 – What It Would Look Like?
Ibrahim Durrani on Windows 11 – News and Updates
Joshua Adams on Zootopia 2 Sequel Confirmed
renamoretti1 on Empire Renewed for Season 4
Sara Doodnath on Justified Season 7 Cancelled
Just Another Random Person 🙂 on Code Geass Season 3 Release Date Speculations
Sara Doodnath on Justified Season 7 Cancelled
Joyce Mitchell on Yukon Men Cancelled?
Mike-Janet Sowell on Yukon Men Cancelled?
Shiranami Kaishido (Shi) on Reigns Beating Strowman Was A Bad Decision
eduard karpoev on Shimoneta Season 2: Updates
Dendy Planeptune on Shimoneta Season 2: Updates
Glenn Martin on Yukon Men Cancelled
WillFanofMany1 on Zootopia 2 Sequel Confirmed
WillFanofMany1 on Zootopia 2 Sequel Confirmed
Garland Remington on The Curse Of Oak Island Canceled?
Garland Remington on The Curse Of Oak Island Canceled?
Garland Remington on The Curse Of Oak Island Canceled?
Garland Remington on The Curse Of Oak Island Canceled?
Garland Remington on The Curse Of Oak Island Canceled?
Garland Remington on The Curse Of Oak Island Canceled?
Garland Remington on The Curse Of Oak Island Canceled?
Yatogami ✔ᵛᵉʳᶦᶠᶦᵉᵈ on Noragami – Season 3 Release Date, News & Update
Garland Remington on The Curse Of Oak Island Canceled?
Patrick Lambert on Zootopia 2 Sequel Confirmed
Astracifationo on Zootopia 2 Sequel Confirmed
Astracifationo on Zootopia 2 Sequel Confirmed
Joy McGowan Elson on Hemlock Grove Season 4 Canceled
🅼🅾🅳🅳🅴🅳__ 🅷🅰🆇🅾🆁 on Seraph of the end Season 3 Release Date
jonnysw on No Gentleman
Kevin Kylie on No Gentleman
Victor Szendzielarz on No Gentleman
Usunder on No Gentleman
David E on No Gentleman
David D'Angelantonio on The Curse Of Oak Island Canceled?
MAC on No Gentleman
Angriest_Beaver on Zootopia 2 Sequel Confirmed
Angriest_Beaver on Zootopia 2 Sequel Confirmed
Gingerbread2 on No Gentleman
disqus_feN63FpcdG on The Curse Of Oak Island Canceled?
disqus_feN63FpcdG on The Curse Of Oak Island Canceled?
Michael on No Gentleman
Trumpworksforrussia on No Gentleman
Lisa Amey on No Gentleman
William McGrath on No Gentleman
tineras on No Gentleman
D. Kaye on No Gentleman
DardaniaLion on GTA 6 – News & Update
herp derperson on Log Horizon Season 3
Debbie Hillen-Reyes on Lucifer Season 3: Will it happen?
Patrick Lambert on Zootopia 2 Sequel Confirmed
Carol Shingle Swenson on The Curse Of Oak Island Canceled?
SiliconAddic on Zootopia 2 Sequel Confirmed
SeiRruf MalaWolSki on Zootopia 2 Sequel Confirmed
YanossGaming on Zootopia 2 Sequel Confirmed
Ryan Woodward on Zootopia 2 Sequel Confirmed
NoRightToNotBeOffended on The Curse Of Oak Island Canceled?
Nathaniel D Vitchner on The Curse Of Oak Island Canceled?
Sandy Rehfuss Scott on The Curse Of Oak Island Canceled?
Furious Shiroe on Log Horizon Season 3
Timothy Ouellette on Black Bullet Season 2?
Charles Gauthier on The Chevy Bolt vs. Tesla Model 3
baz on
Acebravo on
havasu46 on
RobertJGood on
Acebravo on
Pjews on
Acebravo on
BritishGuy94 on
Kurt Windibank on
Kurt Windibank on
Bill on
LP on
Frenchman75 on
johns19 on
Jimmy Witts on
Pjews on
Devon Ho on
Padraig Aidan Doherty on
Nick on
MF33 on
Acebravo on
Disqusr on
DavidB23 on
Bob Bigellow on
Joh Lei on
rbestlab on
Joe Maristela on
Acebravo on
Zachary Braganza on
Acebravo on