Analysts believed that the Zynga's decision to stop its plan of entering the online gambling industry was a bold and wise move. However, they also thought that the drowning social games developer is far from rescue.
Zynga posted its bleakest earnings report to date. The company's shares dipped 14% in after-hours trading following its latest quarterly earnings loss of $15.8 million. According to analysts, the main problem of the company should be addressed before venturing into unfamiliar territory. Recently, another blow to the dying company occurred as reports suggested that it was totally losing its grip on the market.
Brian Blau, Gartner Inc.'s analyst said, "When you look at the trend over time, it's not going in the right direction."
The company saw a huge boost after its initial public offering in December 2011. The company had shares over $10 dollars under the management of then CEO Mark Pincus. Currently, the company registered a dismal 2 cents per share.
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