Once a media and investment darling, social gaming giant Zynga is coming on hard times. The company released its second quarter earnings, causing the stock to plummet as much as 40% in after-hours trading.
The company posted a loss of $22.8 million, and revised projected profits downward from 29 cents a share to 23 cents a share, a figure that has investors panicked.
Shares in the company are hovering around $3 in after-hours trading, below its $5.08 closing price, and well below the $15.91 high it once traded at.
Zynga CEO Mark Pincus blamed the late launch of The Ville and lackluster performance of Draw Something for its lackluster results. The company had paid over $200 million to acquire the developer behind the former drawing phenomenon.
Some analysts are quite displeased with Zynga's potential. "The results are a disaster," Sterne Agee & Leach analyst Arvind Bhatia told The Wall Street Journal. "It's looking more and more like this might have been a fad." Some Shackers might be shaking their heads, muttering "we told you so."