ByVlad Deshkovich:Zynga (ZNGA) has been creating casual games since its inception. Leveraging the Facebook platform that it was born on, Zynga was able to provide its content to a huge number of people on the social network. Memorable titles like Farmville served to catapult the stock to as high as $14.69. Investor sentiment has waned, however, and the stock is now worth a measly $3.17.
By Zacks Investment Research:
After reporting lackluster fourth quarter results, hurt by higher game development costs, social game maker Zynga Inc. (ZNGA) is gearing up to turn publisher, much akin to its closest competitor Electronic Arts Inc. (EA).
Renewed interest in social networking companies was led by an earnings report by Facebook (FB); companies like LinkedIn (LNKD) and Zynga (ZYNGA) rose. Yet when a word cloud of Facebook's quarterly conference call is visualized, danger lurks ahead for Zynga.
Zynga is laying off about 30 people, or 1 percent of its workforce, as it shuts down four offices in New York; Baltimore; Austin, Texas; and McKinney, Texas. All four of the offices had recently lost their leaders, and many were associated with big flops for the struggling maker of social games.