Where Has Zynga Inc (NASDAQ:ZNGA)’s Zing Gone?

Posted by Lynn Eisler October 10, 2013 0 Comment 1873 views

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.

Wednesday’s trading

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.

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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