Published on 26th July 2012
Troubles at Zynga, the creator of popular online social game FarmVille, came home to roost — and those woes could spread to partner Facebook and other social-media companies. After reporting disappointing earnings Wednesday after the market closed, Zynga stock on Thursday opened sharply lower. It was off 40% from Wednesday's $5.08 close, to around $3. Investors are bracing for bad news from Facebook, too. Shares of Facebook, which depends on Zynga for 12% of revenue, were off 6.5% Thursday, ahead of its first earnings report since its May IPO. The social-media giant will posts earnings after markets close. [USA Today]