What happened

<p class = "canvas-atom text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Actions of Zynga& nbsp;(NASDAQ: ZNGA) gained 14% in January, according to data from & nbsp;S & amp; P Global Market Intelligence. Continued momentum in the company's recovery, combined with the stock market as a whole, allowed the stock to achieve double-digit gains and reach a four-year high last month. . "Data-reactid =" 12 "> Shares of Zynga (NASDAQ: ZNGA) gained 14% in January, according to data from S & P Global Market Intelligence. The company's successful recovery, combined with the strength of the stock market as a whole, helped the stock to record double-digit gains and reach its highest level in four years last month.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "ZNGA given by YCharts. "data-reactid =" 26 "> ZNGA data by YCharts.

The enthusiasm generated by the release of fourth quarter results in early February and the tracking of the company's key games with a strong commitment may have also contributed to the rise in January's inventory.

Person using a mobile phone.

More

Source of the image: Getty Images.

So what

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The pivot of the company away from the focus on launching new games in order to make the most of established franchises like & nbsp;Zynga Poker, CSR race, and Words with friends & nbsp;until the performance of sales and profits improves has paid off. Zynga has managed to create a solid business around its core of "permanent franchises". Having completed his main catalog and development resources through a series of successful acquisitions and new deals, his business prospects are more promising than in recent years. & Nbsp; & nbsp; "data-reactid =" 50 "> The company's launch of new games aims to make the most of established franchises such as Zynga Poker, CSR race, and Words with friends until the performance of sales and profits improves has paid off. Zynga has managed to create a solid business around his heart of "franchises forever". After completing its main catalog and development resources through a series of successful acquisitions and new deals, its business prospects are more promising than in recent years.

Now what

Zynga released fourth quarter results after market close on February 6th. The results exceeded market expectations and allowed the security gains to be extended. Equities have risen about 8% since February.

The story continues

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "ZNGA given by YCharts. "data-reactid =" 70 "> ZNGA data by YCharts.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Sales for the period increased by 7% on a year to reach $ 249 million, operating cash flow increased by 241% over the previous year to $ 90 million and the company's best performance in this regard since 2011. Frank Gibeau, CEO of Zynga, said that the turnaround is now completeand management projects expect sales for 2019 to increase by 27 percent annually to $ 1.15 billion. The shares are trading about 19 times the expected profits this year. & Nbsp; "data-reactid =" 71 "> Sales grew 7% year-over-year to $ 249 million, and cash flow from operations increased 241% to $ 90 million and recorded the best the company's performance in this regard since 2011. Zynga Chairman Frank Gibeau said the business turnaround is now complete and management plans for 2019 will increase by 27 percent per year to $ 1.15 billion. 19 times the expected profits this year.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 72 "> More from The Motley Fool

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Keith Noonan has no position in the mentioned actions. The Motley Fool has no position in any of the actions mentioned. The Motley Fool has a disclosure policy."data-reactid =" 80 ">Keith Noonan does not own any of the shares mentioned. The Motley Fool has no position in any of the actions mentioned. Motley Fool has a disclosure policy.