July 25th, 2012 
Kamran Draeger
Social gaming company Zynga has seen a massive drop in their share price after releasing the company’s earnings.
Analysts previously predicted that the Farmville creator would make about 6 cents per share on revenues of $344 million, which is already a low. Failing to meet these expectation Zynga reported that it only managed to earn one cent a share on revenues of $332 million.
Within hours the companies stock plummeted nearly 40% to a price of $3,20.
Zynga is trying to take on a more prominent role in mobile gaming, though it appears as if some of the titles they are already working with are challenging on their own. In a press release the company explained:
“We are lowering our outlook to reflect delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something.”
Facebook shares were effected by this drop as well, with their stock falling 7,3% as of now.
We have never really been fans of the games that Zynga has to offer, regardless, we look forward to see how they might try to turn things around.
Posted in 