Zynga shares tumble to fresh low on Facebook fears

Jun 12, 2012
Shares of the social media games maker Zynga plunged more than 10 percent after an analyst note highlighted concerns about the impact on the firm of a shift to mobile Internet.

Shares of the social media games maker Zynga plunged more than 10 percent Tuesday after an analyst note highlighted concerns about the impact on the firm of a shift to mobile Internet.

Zynga, whose games are popular on Facebook, closed down 10.57 percent at $4.98, the first close below $5 since it went public last year at $10.

A report by analysts at Cowen & Co. said Zynga may not get the revenues some people expect if Facebook users gravitate to mobile devices.

"We believe that mobile devices may be siphoning off an accelerating number of gamers from Facebook," the report said.

"Facebook itself is increasingly being accessed by devices, however it is not possible to play Facebook-native apps through Facebook on a smartphone."

Zynga makes and operates the online games FarmVille, Mafia Wars CityVille, Words With Friends and Zynga Poker, and gets most of its customers from Facebook.

Facebook shares rose 1.46 percent to $27.40 but remain well below their offering price last month of $38.

Explore further: Jury says Silicon Valley firm did not discriminate (Update)

add to favorites email to friend print save as pdf

Related Stories

Zynga insiders price new stock offering at $12

Mar 29, 2012

(AP) -- Online games company Zynga Inc. said Wednesday that CEO Mark Pincus and other insiders will sell some of their stake at $12 a share, slightly below Wednesday's closing price.

Recommended for you

Intel in talks with Altera on tie-up

Mar 27, 2015

US tech giant Intel is in talks with rival Altera on a tie-up to broaden the chipmaker's product line amid growth in Internet-connected devices, the Wall Street Journal reported Friday.

Apple chief Cook to give his wealth away: Fortune

Mar 27, 2015

Apple chief Tim Cook is joining Mark Zuckerberg, Bill Gates and other technology titans who have vowed to donate their wealth to charities, according to a report in Fortune magazine.

BlackBerry tops 4Q profit forecasts

Mar 27, 2015

BlackBerry posted a surprise profit in the fourth quarter, but saw a sharp drop-off in revenue as the once-iconic smartphone company said it reached the halfway mark of its turnaround effort.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.