Where Has Zynga Inc (NASDAQ:ZNGA)’s Zing Gone?
There was a time when Facebook users would zone-in on Zynga Inc (NASDAQ:ZNGA)’s online games. Mafia Wars and Farmville were extremely popular and people across the world were literally addicted to them. The company was a sure-shot winner until the point of time it launched its Initial Public offering in 2011 December. So what exactly went wrong in a span of 2 years?
In 2011, a massive 12% of facebook’s revenue was accounted for from Zynga games. In that year alone, the company generated revenue to the tune of $1.14B which diminished to 9% in the 2012 financial year. Come 2013 and the revenue levels are so low that the Facebook has just stopped making a mention of Zynga in its quarterly filings. In the last quarter, Zynga Inc (NASDAQ:ZNGA) reported only $231M in revenue which was a drop of over $100 million on a y-o-y basis. The company had another sequential revenue drop of $31M to $56M in the Q3. It has projected a loss of between $14.00M-$28M in the Q3.
In Wednesday’s trading, Zynga Inc (NASDAQ:ZNGA) dropped by 1.69%. The opening price of the shares was $3.56, which climbed to an intraday high of $3.57 and dipped to a close of $3.48. Approximately 26.81 million shares were traded on Wednesday while an average volume of 23.59 million shares were traded over a 30 day period. The 52-week low of Zynga Inc (NASDAQ:ZNGA) shares is $2.09 and its 52-week high is $4.03. The company has a market capitalization of $2.80 billion.
About the company
Zynga Inc (NASDAQ:ZNGA) is the provider of social-game services. It is engaged in the development, marketing and operation of online social games as live-services that are played over the web and on social-networking sites and mobile-platforms. Its games are accessible on social networking sites like Facebook and other mobile platforms as well as on Zynga.com.