Investors of Zynga must have been the unluckiest of the bunch, mused analysts after the company's recent financial announcements. The company gave a terrible earnings report which had investors unloading Zynga's shares, pushing it down 15% in trading.
Facebook Inc.'s increase in the last quarter prompted the company's stock price to increase a few days ago. Stockholders held on to that last piece of hope, thinking that Facebook's wave will be huge enough for the troubled social gaming company to ride. That was not the case.
A client exodus, amounting to over 30 million players leaving the company's service, prompted Zynga to plummet together with its revenue. Analysts predict that the company is in a deep pit, where the only way out is a ladder which only Facebook can provide.
Market analysts valued the company at US$300 million after Zynga's change of management. The company stated that it had US$1.53 billion worth of marketable securities and cash at hand.
Join the Conversation