Facebook follows Zynga in stock market crumble

Facebook follows Zynga in stock market crumble
Seth Tipps

By Seth Tipps

July 27th 2012 at 8:18AM

Company's first quarterly report meets expectations, reveals $157m loss

Facebook took a beating on the stock market today, following slightly better than expected earnings that failed to wow investors.

As its single biggest earner, Zynga, took a similar dive, the social network's share price fell to a new low of $24 in after hours trading.

The reported Q2 earnings of $1.18 billion was slightly above expectations, but those had already been lowered prior to the launch of the company's IPO.

A net loss of $157 million for Facebook's first ever earnings report has not reassured investors, who have been skittish ever since the disasterous IPO.

With Zynga's stock quivering at $3.03 cents, the closely connected companies are in quite a pickle despite both showing significant growth during the year.