Zynga Stock Takes A Nosedive

by Jim Reilly on Jul 25, 2012 at 11:49 AM

Zynga's stock dropped to a record low 41 percent today with shares falling to $2.99 in after-hours trading. The stock closed at just over $5.00. The dropped also affected Facebook with its shares falling 7 percent.

The company posted a $22.8 million loss in the second quarter. "We are lowering our outlook to reflect delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something," Zynga CEO Mark Pincus says.

When Zynga went public back in December 2011 its shares were worth around $10.00.

[Source: Reuters]