After Zynga Earnings Report. Facebook stock slips too.

Image Courtesy Digital Trends

Zynga the social gaming developer reported a $22.8M loss in the last quarter. The company's shares fell rapidly after reporting the quarterly income. Zynga said,


"A more challenging environment on the Facebook web platform is the reason why we are lowering the Outlook. "


Zynga depends on the Social Network significantly. They reported earlier this year that 92% of the revenue was generated through the Facebook. 


And the next part of the story; Facebook's shares fell significantly after Zynga reported the last quarter loss. In terms of percentage loss, Facebook share was down by 8%.


According to ReadWriteWeb, the company's CEO and founder Mark Pincus touted Zynga's growing advertising business - its revenue was up 170% year-over-year - but said the company "faced new short-term challenges which led to a sequential decline in bookings." Average daily bookings are down 10% year-over-year.


Zynga raised $1B in its IPO last December. But its stock price has reduced to half since then. Today there are 72M monthly active users. The flagship games namely Cityville, Farmville and Castleville have dropped millions of active users.  

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