Zynga shares drop 10%

Social gaming giant trading below $5 for first time after analyst report paints declining picture of Facebook gaming; NASDAQ temporarily halts short sales of stock.

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Zynga shares plummeted more than 10 percent in trading today, with Reuters reporting that the NASDAQ stock exchange has temporarily prohibited investors from short selling the stock, effectively betting on its continued decline.

Bad doggie.

The Farmville developer closed today's trading at $4.98, down from yesterday's close of $5.55. Zynga had its IPO late last year, with its stock initially trading at $10 per share. It topped out at $15.91 in late February, but has since been trending downward.

Today's declines were attributed to an investor report from Cowen & Co. in which analyst Doug Kreutz said the market for Facebook games was in an accelerating user tailspin. NASDAQ also stopped trading in Zynga last month, after the disappointing Facebook IPO had investors indiscriminately dumping shares in multiple social media companies.

Discussion

30 comments
SKU11CRUSHER
SKU11CRUSHER

why do people continue to whine and moan about zynga's causal games like Mafia Wars and Farmville my family has played video games in years until they saw games like Farmville, Cafe World and Bejewled Blitz and now they are playing games more than ever before so why all the bitching

Daian
Daian

Some good news, all this social crap that's milking gullible people to death and annoying their Facebook friends has to fade away at least to some extent.

Shredwolf
Shredwolf

Was Zynga behind the poker game from Facebook? Then I guess I also played game from Zynga much as I don't like to admit it.

EmperorSupreme
EmperorSupreme

All their games are just gimmicks. The biggest gimmick of them all though is getting people to buy fake poker chips with real money. If I'm going to spend real money to play poker I want the chance to at least win real money.

jhcho2
jhcho2

I remember when the zynga founder said that the new trend of gaming is social gaming. This proves that having mild success in one aspect of gaming doesn't mean you understand the industry as a whole. zynga's timer seems to be almost up.

Thesuperstar2k
Thesuperstar2k

I used to play these games, but it starts to get suck.

natasha377
natasha377

can u please come out with a cooking game for xbox 360

nurnberg
nurnberg

I think a lot of players finally found out they were taken advantage of, with all the pay-to-win garbage in these games.

franzito
franzito

Oh, how I love when these companies that boom out of nowhere start to face the reality of the Capitalism: money comes, money goes, time is money, time over...

Richardthe3rd
Richardthe3rd

This really isn't surprising, and I think most people were aware that their initial offering was overpriced.

joujou264
joujou264

Next, or at least let flash games take the spotlight of casual games, I recently tried a flash game on my laptop, since I was bored, I think it was called The Last Stand Union City, really impressive.

Lucidmike78
Lucidmike78

Mafia Wars and Farmville were very successful games.  But the games became too demanding and they got too greedy coming out with better premium items too quickly.  They punished the paying players who were also their best customers.  They just made some really terrible business decisions which might have benefited them in the short term, but killed the game long term.  Also, the market has become saturated with facebook games, and Zynga hasn't had a hit like MW or Farmville since then.

 

Zynga just needs to come out with an amazing game.  There is never a limit to innovation.

Carpetfluff
Carpetfluff

Even the few and far between games on Facebook that were actually fun for an hour a day have all slipped into the same model of constant ads and endless friend pestering just to get another five minutes of play. The timeline redesign has made it harder for even the die-hard addicts to keep track of their games and the whole thing has been heading for a cliff edge for a while. 'Real' gaming publishers take note: ads and micro-transactions might bring in the revenue initially but will just leave you with a big empty void where your userbase once was at some point. 

FallenOneX
FallenOneX

So let me get this straight..... Now that the newness of Facebook has worn off, interest in the games on Facebook are declining as well??? WHO WOULD HAVE EVER THOUGHT THAT WOULD HAPPEN? (sarcasm, sarcasm, sarcasm)

danmanpro
danmanpro

bye bye Zynga, don't forget to close the door on your way out!

UnwantedSpam
UnwantedSpam

Zynga needs to go away. Play some REAL games people.

muppen
muppen

I've (briefly) tried a couple of these Facebook games and they suck. I can't believe some people actually spend alot of real money on them.

Yulaw2000
Yulaw2000

People want good games, not this "social" rubbish.

 

rodier3
rodier3

Hm but how people on wallstreet decided to dump zynga stocks? Why ? They got info about how much people stop buying Zynga credits?  I dont know anyone who bought Zynga coins.. 

MJ12-Conspiracy
MJ12-Conspiracy

Their games suck, all of them are flash friend farmers.....just crap games. Want to know where good REAL flash games are at? Kongregate.com....seriously they have good games there, free to sign up, I think you can just play but not too sure but they have games in every genre no matter what you like.....I'd play there if you really want to play flash games.

Sgthombre
Sgthombre

Well yeah it dropped. The revenue to warrant a decent stock price just isn't there. 

R2BDSi
R2BDSi

Well that shows how casual gaming is fad, a short term trend.

Rocker6
Rocker6

Really not a suprise."Facebook" gaming was just a trend,a very popular for some time,but as it is with all trends,they fade away quickly,only to be replaced with something else,equally short lasting...

Zloth2
Zloth2

 @Lucidmike78

 I don't think Zynga has ever made an actual GAME.  They seem to be taking the latest (and not so latest) psychology tricks for getting people to pay, stiching them together, and dropping some computer graphics on top.

lelewow
lelewow

 @Rocker6  Agree, I don't know of anyone who plays Zynga games anymore, so 2009 lol

Lucidmike78
Lucidmike78

 @Zloth2 I hear what you're saying.  It wasn't a game according to most traditional uses of that word.  I think it just depends on what definition you're talking about.  What is a game?  Is Sims 3 a game?  Is Brain Age/Cooking Mama a game?  What makes Minecraft a game?  The definition of that word is very broad, and pretty much unrestricted because you can create games that would have never been classified as a game before.

 

I definitely agree with you that Mafia Wars must have been made with the goal of making it psychologically addicting first and foremost.

Rocker6
Rocker6

 @lelewow 

Yeah,back in the day,I do remember some of my friends being crazy about Farmville,Mafia Wars,and other Zynga crap,always collecting crops or whatever crap.That lasted about a year,then they simply forgot it ever existed...

 

Whoever thought the trend would seriously live on and heavily invested into it can't be called anything but an idiot...