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New worry for Facebook investors: Zynga posts loss, shares plunge

July 25, 2012|By Jessica Guynn
  • A worker in Facebook's Menlo Park, Calif., headquarters.
A worker in Facebook's Menlo Park, Calif., headquarters. (Jeff Chiu / Associated Press )

Zynga just gave Facebook investors something else to worry about.

Shares of the social networking powerhouse plunged 24 hours ahead of its first earnings report as a public company, taken down by a double whammy: disappointing results from social gaming company Zynga and comments from Zynga Chief Executive Mark Pincus who, in part, blamed Facebook for slashing its outlook for 2012.

Facebook shares were down 8% to $27 in after-hours trading. Zynga accounted for 12% of Facebook’s revenue in 2011.

The stakes could not be higher for Facebook after its much-anticipated initial public offering in May fizzled amid questions about its online and mobile advertising business.

But Zynga was the one on the hot seat Wednesday: Its shares have been clobbered in after-hours trading, down 36% to $3.25.

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