New worry for Facebook investors: Zynga posts loss, shares plunge
Zynga just gave Facebook investors something else to worry about.
Shares of the social networking powerhouse plunged 24 hours ahead of its first earnings report as a public company, taken down by a double whammy: disappointing results from social gaming company Zynga and comments from Zynga Chief Executive Mark Pincus who, in part, blamed Facebook for slashing its outlook for 2012.
Facebook shares were down 8% to $27 in after-hours trading. Zynga accounted for 12% of Facebook’s revenue in 2011.
The stakes could not be higher for Facebook after its much-anticipated initial public offering in May fizzled amid questions about its online and mobile advertising business.
But Zynga was the one on the hot seat Wednesday: Its shares have been clobbered in after-hours trading, down 36% to $3.25.
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