2012 Financial Report has Investors Scrambling Away from Zynga
Zynga stock prices took a huge hit after their latest financial report. Although the report seemed positive, they somehow, had missed their estimate by about $22.8 million. The company’s share price has been dropped by a massive 40% as a result.
Our games reached record audiences, achieving over 300 million monthly active users. We grew our mobile footprint five-fold in the year to 33 million daily active users making Zynga the largest mobile gaming network.
Despite this achievement the numbers do not lie, and they’ve got investors backing out in a hurry.
“The results are a disaster,” Lead analyst Arvind Bhatia told The Wall Street Journal. “It’s looking more and more like this might have been a fad.” Either way, Zynga is not having a good time in the market and if they want to survive, some drastic measures might be needed.