Zynga Shares Plunge After Hours on Lowered Expectations
Shares of Zynga were plunging 19 percent after the closing bell when the maker of Words With Friends disclosed it expected a loss in the third quarter.
Zynga said Thursday it expects revenue of up to $305 million but a loss of up to 14 cents a share, while analysts expected the company to break even in the quarter that ended Sep. 30.
Zynga also said it would take a charge of up $95 million for its acquisition of Omgpop, the company that makes Draw Something, a game that has not been living up to expectations lately.
Zynga blamed the shortfall on The Ville, which hasn't been performing well, causing a delay in launching several new games.
Mark Pincus, the company's CEO and founder, said the company would be implementing "targeted cost reductions in the fourth quarter and rationalizing our product R&D pipeline."
Zynga stock was up 2 cents to $2.82 during regular trading but plunged 54 cents after the closing bell.