Facebook Shareholders: Keep an Eye on Zynga’s Disaster
Things continue to go from bad to worse for newly public social gaming developer Zynga (NASDAQ:ZNGA). The company’s preliminary quarterly projections released today were very discouraging and suggest that the worst might be yet to come.
Zynga expects a net loss somewhere between $90 million and $105 million for the third quarter that ended September 30, and its GAAP loss is predicted to be a drop of 12 cents to 14 cents per share.
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Zynga’s stock price closed Thursday at $2.48 per share after dropping 12 percent.
Unfortunately, bad news for Zynga often spells bad news for Facebook (NASDAQ:FB), as the two companies are consistently tied together for revenues. However, for now at least, Facebook shares have only suffered a slight 1.2 percent dip since Zynga announced its projected losses.
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