New Media Stocks Dive as IPO for Maker of 'Candy Crush Saga' Fizzles

"Candy Crush Saga"

Shares of King Digital Entertainment sunk 16 percent on their first day of trading.

New-media stocks had a rough-going on Wednesday led by King Digital Entertainment, the company behind the hugely popular social game, Candy Crush Saga. The company set its initial public offering at $22.50 last night and its stock plunged 16 percent to $19 on its first day of trading on the New York Stock Exchange.

Zynga, the maker of Words With Friends and a rival of King Digital, saw its shares drop 4 percent to $4.64.

Despite some enthusiasm over Facebook's announcement this week that it acquired virtual-reality goggle maker Oculus for $2 billion, shares of the giant social network dropped 7 percent to $60.38 on Wednesday.

EARLIER: 'Candy Crush Saga' Manufacturer Files for IPO of Up to $500M 

Shares of Twitter also dropped 7 percent on Wednesday, losing $3.45 and closing the trading day at $44.43. and Apple fared a bit better, losing 3 percent and 1 percent, respectively, and Netflix bucked the losing trend entirely by rising fractionally. 

Competitors Google and Yahoo were down 2 percent and 1 percent, respectively, while the tech-laden Nasdaq index lost 1.4 percent on Wednesday.

Theories as to why new-media shares took a dive Wednesday largely focused on the market's negative reaction to King Digital, which became the worst-received IPO so far this year. Investors selling shares of Facebook on the heels of its Oculus acquisition was also troublesome, some analysts said.