Zynga’s stock has suddenly dropped 41%, the Wall Street Journal reports.
This is surprising news for the FarmVille maker, which has been facing difficulties on the stock market for the past year. Shares are now down to $US2.99 a pop.
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Zynga Stock Suddenly Drops 41%
Finally Zygna is been seen for what it is, a parasite. They are all that is wrong with micro games nowadays, they focus too much on the brand and not enough on the games. I refuse to purchase games with micro payments that are designed to cripple the game.
I can see the headlines a month from now: "Zynga Bankrupt! Grandmothers everywhere have money for food again!"
Or "EA buys Zynga for a song" then "EA to incorperate Facebook into all of it's major franchises" and all of a sudden we're buying Zynga style credit to grabthe latest roster update on Madden or paying to unlock an area on ME FB just so you can have an Uber gun in ME 4.
Even if people see Zynga as a worthless parasite, a drop in 41% overnight seems pretty dang unusual, even for such a low share price. However what they're good at is leeching small amounts of money for a lot of people. It won't stay this low.
I agree entirely with you Matthew. Although I dislike Zynga on a personal level I am seriously considering a small investment as I believe the stock price will stabilize quickly and there is definately some room for quick profit there.
its not unusual when there is bad news about the company. They just slashed their 2012 Outlook and revised earnings to between 4-9 EPS (Earnings per share). The market in general expected 26 EPS. Such low projections compared to what the market was expecting is the reason for the market to slam the price down 41%,