NEW YORK (AP) — Investors are selling shares of Zynga after the company behind the most popular Facebook games fell shy of high expectations for its first earnings report as a publicly traded company.
Zynga Inc. reported better fourth-quarter results than what Wall Street was expecting, at least according to the average estimate compiled by FactSet. But Barclays analyst Mark May says the results fell short of some recent, more bullish expectations.
Zynga’s stock also enjoyed an ascent in the days leading up to its earnings report. The stock is down nearly 12 percent Wednesday.
May says he is downgrading Zynga’s stock to “Equal-Weight” from “Overweight” in large part because of its recent price increase. Overall, though, he says he is positive on the company’s long-term growth prospects.