Last Thursday, Zynga pre-announced its third quarter earnings and they didn’t look pretty (we reported). Not only did the company miss expectations across the board, but its business appears to have stopped growing altogether.
Predictably the news resulted in another drop of Zynga’s stock price after a year that can only be described as turbulent for the young public company. On October 8, Zynga’s stock closed at $2.43, down 76 percent from its IPO price and more 83 percent from its all-time high ($14.69, March 2, 2012).
At its current valuation, some analysts are seeing Zynga as a potential target for takeover and the pressure on CEO Mark Pincus is starting to mount.
Above chart nicely illustrates how recent events surrounding Zynga have immidiately affected the company's stock price.