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.

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"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

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.