Buzz Stocks: Zynga Inc, Weight Watchers International, Inc., and Rackspace Hosting, Inc.

U.S. stocks are comfortably higher after an upbeat U.S. nonfarm payrolls report. Among equities in focus today are mobile gaming stock Zynga Inc (NASDAQ:ZNGA), weight management stock Weight Watchers International, Inc. (NYSE:WTW), and cloud management firm Rackspace Hosting, Inc. (NYSE:RAX).

• ZNGA is down 6.4% at $2.78, after issuing a weak current-quarter bookings forecast.  However, Credit Suisse and Benchmark both raised their price targets for ZNGA, to $2.89 and $3.48, respectively, in yet another bullish brokerage move for the gaming stock. Today's fall comes just one day after Zynga Inc touched a new annual high of $3.02, but the stock could find support atop its ascending 10-week moving average. Near-term option traders were bullish ahead of earnings, with ZNGA's 50-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sitting at 10.71, higher than 95% of all other readings from the past 12 months.

• WTW is down 11.5% at $10.06, after reporting lackluster second-quarter sales. WTW, which has struggled in the age of fitness trackers and apps, is now on pace for its lowest close since the Oprah Winfrey-inspired bull gap in October. A breach of $10 could turn the formerly supportive round number into resistance. Short sellers have been flooding WTW, with short interest up 8.8% over the previous two reporting periods, now accounting for a whopping 61% of the stock's float. All of WTW's shorted shares would take over three weeks to cover, at WTW's average daily volume.

• RAX has surged 12.4% to sit at $29.41 -- a year-to-date high -- on reports that the stock is in talks to be taken private. The latest rumors, meanwhile, suggest Apollo Global Management LLC (NYSE:APO) is mulling a bid. Today's move puts RAX up 17.8% for the year, finally pushing the shares above the $25-$26 region that has contained recent breakout attempts, and RAX now sits above its50-week moving average for the first time since May 2015. This isn't the first time buyout rumors have heightened interest in the stock, yet options players have been ramping up their bearish exposure, possibly to bet on earnings next Monday, Aug. 8. Rackspace Hosting, Inc.'s 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 3.11 sits at an annual high.

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