Zynga shares plunged 18 percent on Thursday, on the apparently unwelcome news that founder Mark Pincus is resuming his prior role as CEO.
The troubled game maker previously saw its shares fall 70 percent under Pincus's tenure, and in July 2013, Don Mattrick was brought in to execute a turnaround. Now he's out, Pincus is back, and Wall Street is upset.
"We see very little in this news that can be construed positively, as the found … is being brought back to replace a more recent CEO whose turnaround efforts we view of having been incomplete as best," wrote Needham analyst Sean McGowan in a Thursday morning note.
In fact, McGowan went as far as to suspend his rating on the stock, which he had previously considered a "Buy."
"We believe the uncertainty over the fundamental prospects, a lack (so far) of a clear explanation of why Mr. Pincus is the best choice now to run the company, and some sense of how stable the executive ranks will be leaves us with very little basis for a rating and price target at this point," the frustrated analyst wrote.
Even Richard Greenfield, the BTIG analyst who in February called for Zynga's board to remove Mattrick, isn't happy.