Zynga Shares Tank, Down 40% On Q2 Earnings Miss, Lower 2012 Outlook

Image representing Zynga as depicted in CrunchBase

Image via CrunchBase

From my Forbes.com blog The New Persuaders:

Unforgiving investors are hammering social games company Zynga in after-hours trading following a disappointing second-quarter earnings report.

Shares were down 38% from Wednesday’s closing price of $5.08 a share–already half their IPO price last December. The swoon appeared to take down Facebook too. Shares in the social network, which reports its second-quarter results Thursday, were down 8% in late trading.

The problem: Zynga, creator of popular games such as FarmVille, Mafia Wars, CityVille, and other Facebook games, provided an outlook that can’t be construed as anything but alarming to investors. In particular, Zynga’s acquisition of mobile games startup OMGPOP, maker of the Draw Something game, now looks unwise. …

Read the complete post at The New Persuaders.

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