This tech stock has performed exceptionally well this year, gaining 90%. Last time the stock price saw such growth was in 2003. It’s no surprise that savvy investors are looking back to 2003 to see if history could repeat itself.
The stock in question is ZYNGA Inc. (NASDAQ:ZNGA). On January 1st, 2020 the stock opened at $7.61. By December 7th, 2020 the price had jumped up 90% to $14.53. This marks the highest amount the stock has been at since February 2003.
It’s worth mentioning that the 90% increase doesn’t come without its own set of risks. Despite the stock trading at its highest levels in almost two decades, the majority of analysts are taking a “Hold” stance.
This could be attributed to the company’s business strategy. ZYNGA Inc. has undergone some significant business decisions in 2020, including a new focus on creating and distributing console and mobile games.
This decision has proven to be a positive step for ZYNGA Inc.’s stock performance. Additionally, the Company is continuing its efforts to expand its offerings by creating new content, such as virtual items and products.
ZYNGA Inc has had a strong year, but investors should use caution when considering the stock. It’s important to note that the gains made this year may not be sustainable in the long-term. Additionally, the Company’s strategy of focusing on mobile and console games may not be successful in the future.
Overall the performance of this tech stock has been impressive. While there are some risks to consider, ZYNGA may continue to provide excellent returns even after the 90% increase seen this year.