![]() Not even the earnings call news that the company was getting into real-money gambling could spark optimism around its financial fortunes. So when Zynga's second financial report since its IPO fell far short of expectations, a sell-off of company stock dropped the price below $3.33, less than one-third of what it initially traded for the previous December. This industry will forgive a lot if you're making money – hello, Activision Blizzard board of directors – but no profit margin means no margin for error. But the sentiment around the company got notably worse starting with a handful of developments in the last week of July.įirst (and, if we're being honest, foremost), the company stumbled financially. It was already in a precarious spot, suffering from a deflating Facebook social gaming bubble and struggling to build up much of a presence in mobile gaming to offset those losses. Zynga always had its detractors, being a poster child for the social gaming boom that some traditional developers and players found derivative, exploitive, or just plain evil.īut a decade ago, the social gaming giant had become a punching bag for essentially anyone and everyone.
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