Zynga stock plunges after dismal outlook
NEW YORK (AP) — Zynga's stock is plummeting after a dismal earnings report and dimmer outlook from the online game company that has prompted several analyst downgrades and questions about its long-term relevance.
Zynga Inc. cut its full-year guidance sharply Wednesday after reporting a loss and revenue below Wall Street's expectations. Though both user numbers and revenue increased, analysts were expecting much more.
Goldman Sachs and others have downgraded the stock and lowered their target prices. Goldman says Zynga's stock is unlikely to go up significantly until it starts to return to its prior levels of profitable growth.
Zynga's stock is down $1.98, or 39 percent, at $3.10 in afternoon trading. That's its lowest level since Zynga went public in December and nearly 70 percent off its IPO price of $10.
