This interactive content leader is too cheap to pass up

2021 been a challenging year for investors who bet big on video game stocks, and $Zynga (ZNGA.US)$ has been among the industry's biggest losers. The company's share price is now down roughly 35% across this year's trading.

After enjoying some stellar growth tailwinds amid 2020's shelter-in-place and social distancing conditions, the market wasn't impressed by the sales and earnings that $Zynga (ZNGA.US)$ and other top industry players posted this year. Not only was $Zynga (ZNGA.US)$ up against a challenging basis of comparison, it also saw engagement for some of its key games slip as people began getting back out into the world. Unfortunately, these weren't the only factors that weighed on the company's valuation.

$苹果 (AAPL.US)$ and $谷歌-C (GOOG.US)$ $谷歌-A (GOOGL.US)$ have implemented more restrictive standards for the gathering of user data on their respective mobile platforms, and that means that targeted advertising in video games is going to be less effective. $Zynga (ZNGA.US)$ has been making acquisition moves in order to build in-game ads as a revenue stream, and the outlook on that front has taken a hit. Crackdowns on the technology and entertainment industries in China have also narrowed opportunities in a key geographic segment that many publishers were counting on as an important market.

That's admittedly a lot of headwinds to deal with inside of a year, but $Zynga (ZNGA.US)$ stands as one of my top stock picks for 2022. The company has a great a balance sheet and a strong collection of development and marketing resources to work with, and it should be able to continue delivering new hit games and content updates that drive sales and earnings higher. Tech shifts including augmented reality and the metaverse are just starting to take root, and $Zynga (ZNGA.US)$ has shown that it knows how to keep players engaged and spending -- even if the market isn't exactly enamored with its recent results.

For investors looking to capitalize on the long-term growth of the global gaming industry, Zynga stock is too cheap to ignore.