Zynga Stock Takes Major Hit
Lately, Zynga stockholders have been collecting bad news the way Farmville players collect lost lambs. The latest bad news came yesterday when Zynga stock lost almost 20% of its value in after hours trading.
No one knows for certain why the social gaming company’s stock ended the regular trading day at $2.82 and came out of after hours trading at just $2.29. There’s really no single big event dragging the stock down, rather it’s a whole bunch of smaller ones.
The company’s current woes include the loss of several key executives; a massive lawsuit from EA Games; and a growing inability to compete with mobile gaming platforms. Add those to the company’s not-so-great reputation and it’s easy to why investors are taking a pass.
If there’s any good news headed Zynga’s way it’s probably going to come in the form of real money gambling. The big question now is whether Zynga can get those projects off the ground before their stock bottoms out.
What do you think is behind Zynga’s dismal stock performance? Share your thoughts in the comments section below.