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Zynga IPO Offers Another Play, Money Pro Says

Zynga, with one of the most anticipated initial public offerings of the year, could spur a rally in one of its competitors, one investment pro said Monday on “Fast Money.”

“If Zenga has a big pop on Wednesday, you’re going to see Electronic Arts move in favor with that,” said Simon Baker, CEO of Baker Avenue Asset Management. “Not too many of us are going to get much stock in Zynga this week.”

Baker looked favorably on Electronic Arts’ recent $750 million acquisition of PopCap Games, maker of popular titles for Facebook and the iPhone, such as “Bejeweled” and “Plants vs Zombies.”

PopCap has been profitable since its founding, generating $100 million in 2010 revenue.

While video game sales were up 0.4 percent year over year in November to $3 billion, Baker said “Lord of Ultima,” one of EA’s games, was broadening its demographic.

“It’s not just the young folks playing,” he said. “Its granny, mum, dad, kids — I mean, no one else has done this in the gaming industry.”

Electronic Arts traded in the $21 range Monday, and the company has a market capitalization of $7.16 billion.

Zynga reportedly set the price range for its initial public offering around $8 to $10 a share, a highly anticipated debut that could value the company at $7 billion.

Baker called EA stock a safer bet getting into the gaming space.

“Longer term, it looks great,” he said.

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Trader disclosure: On Dec. 12, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Kelly is long IWM; Kelly is long LNG; Kelly is long EUR; Kelly is long CHF; Cortes is long; Cortes is long Treasuries; Cortes is long INTC; Cortes is long SVU; Cortes is long TSN; Cortes is short; Cortes is short AUD; Cortes is short EUR; Cortes is short GBP; Cortes is short AAPL; Cortes is short DB; Cortes is short Crude; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Weiss owns EUO; Weiss owns JPM; Weiss owns QCOM; Weiss owns HPQ; Weiss owns GM

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