James Delahunty
18 May 2012 17:55
Zynga's stock plunges on Friday.
The social gaming company saw the value of its shares drop sharply at times on Friday, prompting two automatic halts in their trade. A 13.3 percent drop to $7.17 a share followed Facebook's IPO. After trading restarted, the stock rose to $7.80 per share but trading halted again.
It was speculated that the drop was due to Facebook's stock not shooting up in value immediately as had been previously expected, or that Zynga shareholders were dumping their shares to invest in Facebook instead.
Zynga relies heavily on revenue generated by Facebook users. It was not the only company that was effected on Friday by the Facebook IPO. LinkedIn, Yelp, and China's Renren (social network) saw some significant drops throughout the day too.
Zynga's stock finished the day at $7.16 per share (down 13.4 percent), it's lowest level yet.