For the first quarter, Zynga is now projecting revenue of $255 million to $265 million, and a loss between 2 cents to 4 cents per share. Analysts currently expect a loss of about 1 cent a share on revenue of $240 million, according to Thomson Reuters.
Zynga got an unexpected boost on Tuesday morning as Bank of America Merrill Lynch analyst Justin Post raised his price target for Zynga shares to $3.40 from $2.70 and raised his rating to "buy" from "underperform," skipping an entire level. He cited asset value and Zynga's mobile business as the source of his optimism.
The game maker has struggled to tighten up its ship. In October, Zynga'a chief executive, Mark Pincus, laid off staff and announced $200 million in stock buybacks after the company forecast a loss for the December quarter.
— Reuters contributed to this article