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: Why the Sony hack isn't big news in Japan

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

Why the Sony hack isn't big news in Japan

9 hours ago

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

14 hours ago

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

15 hours ago

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

Clooney slams skittish Hollywood after Sony hack

Dec 19, 2014

Film star George Clooney slammed the Hollywood movie industry for failing to stand up against the cyber threats that prompted Sony Pictures to cancel release of the movie "The Interview."

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.