Technology

4 Goldman Sachs Tech and Gaming Stock Picks Under $10 With Huge Upside Potential

Infinera

Some feel that this top company would be an outstanding addition to a networking giant as a takeover candidate. Infinera Corp. (NASDAQ: INFN) provides Intelligent Transport Networks, enabling carriers, cloud operators, governments and enterprises to scale network bandwidth, accelerate service innovation and simplify optical network operations.

Infinera’s portfolio of solutions includes optical transport platforms, converged packet-optical transport platforms, optical line systems, router platforms and a suite of networking and automation software offerings.

Back in the summer, Infinera and Windstream completed a live network trial that successfully achieved 800G single-wavelength transmission over 730 km across Windstream’s long-haul network between San Diego and Phoenix. The results of the trial mark a major milestone in optical networking by demonstrating that ultra-high-speed optical transmissions, such as 700G and 800G, powered by Infinera’s ICE6 optical engine and Windstream’s high-performance fiber network, can be deployed in real-world network applications over significant distances.

The $10 Goldman Sachs price objective compares to the posted consensus target price of $6.88 per share. Infinera stock traded below $7 a share late last week.

Zynga

This very aggressive gaming play could have upside above the Goldman Sachs target. Zynga Inc. (NASDAQ: ZNGA) is a leading developer of mobile and social games. In the company’s relatively short history, it has developed a broad portfolio of games that includes several on Facebook and several top-grossing mobile apps. Key franchises include FarmVille, Zynga Poker, Hit It Rich Slots and Words With Friends.

Snap announced last year that it was expanding its partnership with Zynga to release new titles on Snap’s gaming platform. The partnership may expand Zynga’s reach to a younger demographic, though the near-term revenue opportunity is likely not impactful to Zynga. Content investment commitment from Zynga an indication of strong engagement and a very solid long-term opportunity.

Goldman Sachs has set its price target for Zynga stock at $11.60. The posted consensus price objective is $10.41, and the shares changed hands around $9.50 apiece for much of last week.


These four stocks have all been sent to the single-digit penalty box. Some of these companies may have a difficult road back to prosperity, but given what we have seen in the past, and the massive liquidity Washington, D.C., has provided, the odds are good that each survives this downturn.