Zynga Stops Playing Games
The social gaming company announced yesterday that it will cut 520 employees – about 18% of its headcount – in an effort to save the company between $70 and $80 million per year. The company will close several offices, including those in New York and Los Angeles.
Zynga also lowered guidance on its second quarter 2013 earnings, saying it will likely lose somewhere between $28.5 and $39 million. Previously, estimates were for a loss of between $26.5 and $36.5 million.
The news sent the stock down 12%, falling below a price of $3 per share at one point.
While the market received the news negatively, is there a potential for the FarmVille-maker's stock to grow in your portfolio? We ask Talking Numbers contributors Enis Taner, Global Macro Editor at RiskReversal.com, and Richard Ross, Global Technical Strategist at Auerbach Grayson, for their thoughts on where Zynga is headed next.
To hear the Taner and Ross analyze Zynga, watch the video above.