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If you're wondering how Facebook is going to do ahead of their first quarterly earnings report since entering the public market, the news from its close ally Zynga isn't a promising sign.
Zynga's second quarter results missed analysts' expectations and the company cut its outlook. That news pushed shares of Zynga (ZNGA), which has a lot riding on the continued success of Facebook, down more than 35% in after hours trading. Shares of Facebook (FB) fell 8% following the report.
Zynga, the casual gaming pioneer best known for FarmVille and its other -Ville franchises, reported sales of $332 million for the quarter ended June 30. That fell short of the $344 million in sales that analysts polled by Thomson Reuters were predicting.The company reported a net loss of $22.8 million. But excluding stock compensation costs, Zynga reported a profit of 1 cent per share, lower than the 6 cents a share analysts were expecting.Zynga also indicated that users aren't shelling out as much to play games on Facebook, the platform for some of Zynga's most popular games. The company's online gaming revenue in the second quarter was down compared to the previous quarter.Full News...
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