Zynga nightmare continues as stock sinks deeper

Zynga nightmare continues as stock sinks deeper
Seth Tipps

By Seth Tipps

May 21st 2012 at 8:55PM

While Draw Something popularity continues slump

Zynga's fortunes continue to fall as the bell rang on a one percent tumble in share price.

The company launched its IPO in December of last year to high expectations, and has a first year target estimate of $12.50 a share, but has struggled to keep pace with the original asking price of $10.

The launch of the Facebook IPO on Friday caused shares to dive to record lows, dipping below seven dollars for the first time, to close at $7.16.

Today Zynga's losses deepened, opening at $6.83, setting new lows as prices dropped below $6.40, and closed at $7.09; a loss of seven cents from the previous close.

The decline in share price comes after a loss of 2.9 million MAUs for OMGPOP's Draw Something, which Zynga acquired for a whopping $180 million cash.

While the rest of the market showed signs of recovery from a poor showing last week, Facebook and Zynga's continued decline has lead to serious concerns about the handling of Friday's IPO.

Facebook, which depends on Zynga for twelve percent of its revenue, fell by over ten percent, closing at $34.03- nearly four dollars below its set price of $38.