Zynga has seen their stock fall by 40% since they lowered their outlook for the second time this year, something that clearly hasn't gone down well with investors.
The makers of many popular online games such as Farmville is now in pretty hot water as stocks fall and the company start to lose value. With shares now around $2.21 each, a long way down from the $15.91 they were worth back in March it's not looking good. With the fall in shares of Facebook not exactly helping the issue given the nature of how both businesses work closely together.
Zynga was paying as much as 1/10th of Facebook's revenue, a sizable figure indeed, so as Zynga takes a hit to their margins, so too does Facebook. With titles like FarmVille, FrontierVille, Zynga Poker and more loosing players and the company struggling to get new titles to the market, I don't see sign of improvement any time soon.
While the do have a few mobile titles like Words With Friends, it's just not bringing in the money. I do hope Zynga turn their luck around, as I myself play one of their games (poker, not the farm thing), as do many of my friends, it may just come down to them either closing up shop, or selling off titles / assets to curb their losses before its too late.