We thought we’d seen the worse of today’s stock market bloodshed when Netflix shares sank 25% following a warning to investors.
But Zynga’s absolute destruction in after hours trading easily takes the cake.
The ill-reputed social gaming Zynga posted quarterly earnings that fell below analyst expectations, which triggered a staggering stock collapse to the tune of 40%. The company was expected to generate earnings of six cents per share on $344 million in revenue. But it managed only one cent per share in earnings on just $332 million in revenue.
The company is now valued at only one third of what it was when it debuted on the public markets at $10 per share, and a tiny fraction of its peak value when it traded at a high of $16 per share just four months ago in March.