Stock Hits Low Point as Zynga Seeks ‘Right Balance’
Zynga plunged to the lowest price in more than a year after the online game company posted quarterly results at the low end of its forecast and cut its full-year outlook following the decision to delay new games.
The stock declined 3.3% to $2.83 at 9:36 a.m. in New York, after dropping as low as $2.71, the lowest intraday price since June 28, 2013. The San Francisco-based company reported a break-even second quarter and revised its guidance for 2014. The shares had dropped 23% this year through yesterday.
Zynga, once the leader in casual play with titles such as FarmVille, is postponing some new games including poker and Words With Friends to the second half of this year and 2015 for additional work as the company transitions to more mobile play from online. The company also announced deals for games with the NFL, Tiger Woods and Warner Bros.
