Zynga’s stocks have reached an all time low, raising questions about the future of the social and mobile gaming company.
According to reports, Wall Street values Zynga’s stock at just $2.46 per share, a 16 per cent fall in what was already a poor financial positional. Zynga had already warned traders of a fall, though the reality is far worse than might have been expected.
One analyst says there’s no quick fix for Zynga either, with another predicting “significant” layoffs.
"The outlook for [the fourth quarter] is significantly lower than our expectations, which assumed some growth from newer titles launched this summer," claims Doug Anmuth, a JP Morgan analyst. "We expect fundamentals to remain weak over the next few quarters as the company faces several headwinds."
Zynga, which acquired game developer OMGPOP in March for $180 million, has admitted it is to write off between $85 million and $95 million from that investment alone.
OMGPOP was the team behind Draw Something, a mobile game that initially soared in popularity, but has increasingly been deleted from people’s smartphones and tablet devices. Do you still play it?