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Zynga takes axe to outlook, spooks Facebook investors
Game provider Zynga Inc slashed its 2012 outlook and quarterly results badly missed Wall Street targets, sending its stock plunging 35 percent and casting a chill over Facebook Inc on the eve of the social network's inaugural results. Investors now fear a larger-than-expected hit to Facebook's earnings, which relies on the "FarmVille" creators for about 15 percent of its revenue. Shares in the No. 1 social network, which has yet to regain investor confidence since its botched May IPO, slid more than 7 percent to a new low of $27 in after-hours trading. Blaming its poor performance on a steep drop-off in players for its core Facebook money-makers, Zynga took an axe to its earnings forecasts, predicting 4 to 9 cents a share, down from a previous 23 to 29 cents. Zynga shares tumbled to a record low of $3.00 after the bell. That dim outlook highlights how dramatically the fortunes of consumer Int ... Continue to read.
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