Zynga's Bust Kills Social Media Stocks

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Shares of Glu Mobile
GLUU
and Facebook
FB
were seeing increased weakness during Thursday's trading session after other social media player Zynga
ZNGA
reported a very weak quarter and slashed guidance numbers. Zynga reported its second quarter results yesterday after the close. The company reported an EPS of $0.01 versus a $0.06 consensus estimate and revenues of $332 million versus a $344.12 million consensus estimate. Zynga also guided FY EPS $0.04-0.09, which is significantly lower than the previous guidance of $0.23-0.29 and $0.27 estimates. Mark Pincus CEO and Founder, Zynga said, "The company achieved some significant milestones in the quarter including the launch of Bubble Safari, which is now the number one arcade game on Facebook, and the launch of The Ville, now the number two game behind Zynga Poker. Our advertising business continued to show strong growth with revenue up 170% year-over-year. Our games reached record audiences, achieving over 300 million monthly active users." Zynga's tumble has pulled Facebook down more than 7 percent as social gaming is about a tenth of Facebook's revenue. Thursday, shares of Glu Mobile traded down over 13 percent, at about $4.58 per share.
Posted In: EarningsNewsGuidanceIntraday UpdateMoversMedia
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