Why Zynga Stock Plunged Today
Shares of Zynga (NASDAQ: ZNGA) plummeted on Friday after the video game developer warned investors that its growth was slowing. As of 3:40 p.m. EDT, Zynga's stock price was down 18%.
The owner of games such as Words With Friends and Tangle Master 3D saw its revenue rise 59% year over year to $720 million in the second quarter. The gains were fueled in part by a 110% surge in advertising revenue, to $133 million.
Zynga's acquisition of hyper-casual game publisher Rollic in October has helped it ramp up its in-game ad business. The company said Rollic recently surpassed 1 billion game downloads. "We are blown away by Rollic's performance so far this year," Zynga president of publishing Bernard Kim said in a press release.
Source Fool.com
