Market Insider

Zynga shares drop after low forecast for key metric

Zynga
David Paul Morris | Bloomberg | Getty Images

Shares of Zynga fell as much as 8 percent Friday after forecasting current-quarter bookings largely below estimates.

The stock later closed down nearly 7 percent.

Bookings are a metric indicating future revenue, including sales of virtual goods, and a key statistic for the popular online game developer.

The company forecast third-quarter bookings in the range of $180 million to $190 million, largely below the average analyst estimate of $188 million, according to FactSet.

The "FarmVille" creator did report higher-than-expected bookings in the second quarter, driven by higher demand for its slot games and social games such as "Words with Friends."

The company said bookings were $175 million in the three months ending June 30. Analysts on average had expected $171.3 million, according to FactSet.

Since Jan. 1, the stock of the company has risen by about 3 percent.

Zynga performance in 2016


—Reuters contributed to this report.