As of July 25th, Zynga's stock was roughly $5.00 per share. Today, they are $2.40 a share, and have dropped over 50% in just 3 months. This comes from lower than expected earnings. Zynga's earnings come largely from advertisements. Many people play Words With Friends and such games on their phones and tablets, so how did Zynga lose so much revenue so quickly?
A very large chunk of Zynga's revenue came from Facebook, but, with the mobile revolution, many users now connect to Facebook via phone or tablet application, and no longer are exposed to mass marketing as they were on a PC. Farmville 2 is Zynga's answer to a dissolving PC base. Enhanced graphics (3D!), increased interaction with animals and farm devices, and more cooperation are all part of the improvements made to the franchise. It is a good start, but can this save their profits? What do you think about games like Famrville? Tell us in our Forum
