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Zynga stock sinks after lowered 2012 outlook

Associated Press Modified: October 5, 2012 at 5:30 pm •  Published: October 5, 2012
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Sterne Agee analyst Arvind Bhatia, who's been one of the most bearish analysts on Zynga and does not have a target price, said he expects "significant layoffs in the coming months" at the company. He called the size of the company's 2012 guidance reduction "surprising."

Zynga now expects 2012 bookings of nearly $1.09 billion to $1.1 billion, down from earlier expectations of between $1.15 billion to $1.23 billion. Bookings reflect in-game purchases of virtual goods in the quarter they occur.

A representative for Zynga could not immediately be reached to comment Friday.

Zynga's stock fell 34 cents, or 12 percent, to close at $2.48 Friday. It hit an all-time low of $2.21 earlier in the session. The San Francisco company went public Dec. 16. Its stock had priced at $10 the night before, but Zynga was one of the few social media companies to close lower on its first trading day, at $9.50.