Schaeffer's Trading Floor Blog

Zynga Zooms Higher on Declaration of Independence from Facebook

ZNGA touched a new record high, with the stock securing a foothold north of $14

by 3/2/2012 3:22 PM
Stocks quoted in this article:

It's been a day-long struggle for the major market indexes, but new annual highs are still easily outnumbering new lows. The NYSE has racked up 89 fresh annual peaks, compared to just 18 stocks hitting 52-week lows. Meanwhile, the Nasdaq reports 60 new highs, along with only 20 lows. Among today's big gainers is Zynga Inc. (ZNGA - 15.05), with traders cheering the firm's freshly launched gaming platform.

ZNGA price chartThat's right -- on Thursday, the company announced the impending debut of online games at Zynga.com, which will allow users to play Words With Friends, CityVille, and more -- without having to log in via Facebook. As a result, ZNGA is enjoying its second straight session of breakout gains, up nearly 4% at last check. Earlier, the equity rose to a new lifetime high of $15.91.

As a result, ZNGA is on pace to collect a weekly finish atop the $14 level, which had served as a stubborn layer of short-term resistance since early February. However, the stock has nevertheless managed to notch a gain of nearly 54% in 2012, boosted by support at its 10-day and 20-day moving averages.

As the shares flex some technical muscle, ZNGA could attract a few bullish brokers to its bandwagon. Among the 14 analysts following the stock, Zacks reports that nine maintain a "hold" or "sell" rating -- leaving plenty of room for future upgrades.


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