Tag Archives: farmville
So what do you get when you build your business plan on a fad? You get what happened to Zynga, whose stock tanked Thursday afternoon after it announced that it had missed its expected second quarter earnings in its Q2 financial report. The social gaming company’s stock price plummeted to around $3 after hours Thursday night, a loss of roughly 40 percent. Zynga has only been public since December 2011, and its share price peaked at $14.69 in early March this year. Zynga was hurt so hard by the price drop that founder Mark Pincus is no longer a billionaire. Forbes reports that thanks to the price drop, Pincus’s net worth has dropped more $120 million overnight.
Zynga blamed some of the shortfall on Facebook, whose shares also dropped some 8.2 percent following their own lackluster first quarter financial report. The two companies are close allies in the social media market, and Zynga is the largest game publisher on Facebook. Zynga said that Facebook’s new layout made it harder for users to find existing games. Zuckerberg’s own net worth fell a whopping $2 billion Thursday following Facebook’s price drop.