Wed, Jun 13, 2012 | 03:09 BST
Zynga stock plummet prompts NASDAQ short sale ban
Stock in social gaming giant Zynga crashed yesterday, dropping 10% to close below $5.
For those not au fait with markets, that’s a significant dip indeed – so significant that NASDAQ applied a 24 hour ban on short sales of the company’s shares.
The sudden crash seems to be related to a Cowen & Co which described social gaming as being in a “tailspin” in conjunction with the extension of Draw Something to 12 new languages.
Zynga went public in December 2011 for $1 billion, the largest tech IPO since Google’s 2004 debut, but has noted generally downward market fluctuations in the interim.
6 comments
#1
FeaturePreacher
13/06/12, 3:40 am
I’m so loving this!! Let’s hope it gets much, much worse.
#2
Ireland Michael
13/06/12, 3:51 am
@1 Because people losing their jobs, stability and welfare is awesome, right?
Some of you people have some pretty warped perceptions.
#3
Fragpuss
13/06/12, 3:57 am
presumably zynga are in trouble because they turned their games from timefiller games into microtransaction addictions that also meant people no longer spent just 5 mins here and there playing mafia wars, treasure isle, farmville etc, but instead were chained to the games for hours for fear they might miss their crops ripen, or a time sensitive mission for their mafia or something like that, link all that with cross game branding and people started turning away in droves, sending zynga down the toilet
#4
FeaturePreacher
13/06/12, 4:05 am
@2 Because people claiming b.s. such as social games are going to take over can finally see some of the cold, hard truth.
#5
back_up
13/06/12, 9:56 am
PC gamers fav developers zynga
#6
TheBlackHole
13/06/12, 10:22 am
I love how gamers hype things up until they become dominant, and then they promptly switch tact and ruthlessly cut them down.
Petty.