Zynga gets crushed after earnings whiff
Zynga, the creator of online games such as 'FarmVille' and 'Words with Friends,' is getting crushed after it missed on earnings and lowered its guidance.
The company reported an earnings-per-share loss of $0.05 per share Wednesday, lower than analysts' expectations for a breakeven quarter. Additionally, the company estimated revenues in the first quarter of 2016 will be $160 million to $175 million, lower than the $182 million expected by Wall Street.
In response the stock dropped at much as 11% in after hours trade.
Zynga has dropped over 80% since it peaked at $14.95 a share soon after its IPO in 2012. For much of the past 2 years it has traded under $5 a share.
The company has been in the midst of a transition from desktop-integrated games to a mobile-first strategy, trying to revive revenue and create a sustainable hit.
"While we get that Zynga has been a show me story, in 2016, we have better visibility into our slate than ever before, with 6 new games already in soft launch," said CEO and Founder Mark Pincus in the earnings release.
Here's Wednesday's sell off.
