Zynga’s stock suddenly dropped a whopping 41 percent in after hours trading today. The company’s stock is now valued at $2.99 per share, the lowest its ever been.
In a press release sent to investors today, Zynga blamed Draw Something, which it purchased for $210 million earlier this year, Facebook and delays for its struggles. “We are lowering our outlook to reflect delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something,” the company wrote.
According to Zynga, changes in the way Facebook handles game alerts – now favoring new games, hurt them. Ostensibly it impacted the popularity of existing games.
“We also faced new short-term challenges which led to a sequential decline in bookings,” CEO Mark Zingus said in a press release. “Despite this, we’re optimistic about the long-term growth prospects on mobile where we have a window of opportunity to drive the same kind of social gaming revolution that we enabled on the web.”