Friday, October 5, 2012

Zynga stock sinks after lowered 2012 outlook

NEW YORK (AP) - Troubled Zynga's stock is trading near its lowest level ever Friday after the online game maker behind 'FarmVille' forecast a third quarter loss amid weak demand. It's also taking a hefty charge related to its March acquisition of mobile game company OMGPop.

Zynga Inc. said late Thursday that it expects to post a loss for the third quarter, largely because of the $85 million to $95 million charge on the OMGPop purchase. It bought the company behind 'Draw Something' for $183 million.

Baird analyst Colin Sebastian says Zynga's transition from Web-based Facebook games to mobile is 'more painful than expected.'

Zynga's stock is down 19.3 percent at $2.27 in late morning trading. It hit an all-time low of $2.21 earlier. The San Francisco company went public Dec. 16.



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