Zynga Stock Tanks In After-Hours Trading
SAN FRANCISCO (CBS/AP) - Online game maker Zynga is falling sharply in after-hours trading after the San Francisco company reported an unexpected loss in the second quarter.
After finishing up just over three percent at the end of trading Wednesday, after-hours trading has sent the stock plummeting nearly 40 percent.
Zynga Inc. reported adjusted earnings and revenue below Wall Street's expectations Wednesday. The company said it lost $22.8 million, or 3 cents per share, in the April-June quarter. That's down from earnings of $1.4 million a year ago when it was still privately held. Its per-share results last year were at breakeven.
Adjusted earnings were a penny per share, below expectations of 5 cents per share.
Zynga says revenue grew 19 percent to $332 million. Analysts surveyed by expected $342.8 million.
Zynga had a lot riding on this quarter. Investors had been punishing its stock because of worries about declining user numbers.
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