Zynga Shares Crushed as Earnings, Outlook Miss Big

Zynga'ssecond-quarter earnings and revenue missed analysts' expectations on Wednesday and the company's outlook fell far short of expectations.

David Paul Morris | Bloomberg | Getty Images

"We are lowering our outlook to reflect delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something," the company said in a press release.

The news sent shares of the company's stock tumbling in trading after the closing bell.(Click here for the latest after-hours quote.)

Zynga had a lot riding on this quarter. Investors had been punishing its stock because of worries about declining user numbers

Zynga Plunges on Poor Outlook, Facebook Down   

Other Internet stocks including Facebook also fell in after-hours trading. (Click here for the latest after-hours quote.)

Zynga reported second-quarter earnings of 1 cent a share on revenue of $332 million.

Analysts had expected 5 cents a share on revenue of $344 million, according to an estimate from Thomson Reuters.

The maker of Farmville and other Facebook games said it now expects full-year earnings of 4 to 9 cents a share, well below estimates of 26 cents.

The results now raise questions about Facebook's second-quarter earnings, which are due out on Thursday.