Zynga’s stock halted after morning plummet
Update: Zynga’s stock began trading again at 1:30 p.m. EST. At the time of writing, shares are trading for $7.21.
Update No. 2: Zynga finished the day trading at $7.16, though shares dipped as low as $6.93 late in the afternoon. This is Zynga’s lowest closing price yet.
Social game developer Zynga’s shares tumbled to an all-time low this morning before trading was temporarily halted twice.
Zynga’s share prices had seen a multi-week decline after the company’s April 26 earnings report revealed record bookings but an $85.4 million net loss. Zynga shares hit an all-time low on Friday, May 11 when they fell to $7.45 each. The company’s stock had been making up ground, but uncertainty surrounding Facebook’s IPO appears to have caused shares to fall again.
Zynga’s stock opened today at $8.50, quickly dropping under this price but was staying above the $8 mark for two hours. However, without much warning the company’s shares fell to from $8.10 to $7.17 in a span of seven minutes. Shortly afterwards trading was halted for nearly an hour. When trading resumed, Zynga shares were up to $7.80, but they were almost immediately halted again.
It was expected that Zynga’s stock would receive a huge boost from Facebook’s much-hyped IPO today, but it clearly hasn’t been the case this morning. At the time of writing, Facebook’s stock price was trading at $41.32 a share, which might not have been as much of a pop as some anticipated. Zynga’s slumping stock could reflect investor disappointment. Investors clearly still believe Zynga’s fate is tied to Facebook, despite the developer’s attempts to expand outside of the social network with its Zynga.com platform and an aggressive move into mobile games.