Zynga Eyes Internet Gambling Launch As Shares Plummet

Social gaming giant Zynga, which will soon launch a real-money Internet gambling bid, saw its share price plunge 40 percent Wednesday after its second-quarter results missed analyst expectations.

Total revenues were $332m, up 19 percent compared to the prior-year quarter, while net losses were $22.8m, or 3 cents per share.

Analysts on Wall Street were expecting earnings of 7 cents per share on sales of $344m.

Shares fell by as much as 40 percent in after-hours trading as the company sharply lowered its estimates for the year.

In an earnings release, the company flagged up concerns about operating conditions on the Facebook platform, where it derives most of its business, and reduced expectations for its newly acquired Draw Something app.

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