Zynga shares tumble to fresh low on Facebook fears

June 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: Zynga price falls 13.3% as Facebook IPO trades flat

Related Stories

Zynga insiders price new stock offering at $12

March 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

Google, EU dig in for long war

July 20, 2017

Google and the EU are gearing up for a battle that could last years, with the Silicon Valley behemoth facing a relentless challenge to its ambition to expand beyond search results.

Strengthening 3-D printed parts for real-world use

July 20, 2017

From aerospace and defense to digital dentistry and medical devices, 3-D printed parts are used in a variety of industries. Currently, 3-D printed parts are very fragile and only used in the prototyping phase of materials ...

Swimming robot probes Fukushima reactor to find melted fuel

July 19, 2017

An underwater robot entered a badly damaged reactor at Japan's crippled Fukushima nuclear plant Wednesday, capturing images of the harsh impact of its meltdown, including key structures that were torn and knocked out of place.

Microsoft cloud to help Baidu self-driving car effort

July 19, 2017

Microsoft's cloud computing platform will be used outside China for collaboration by members of a self-driving car alliance formed by Chinese internet search giant Baidu, the companies announced on Tuesday.

0 comments

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.