Zynga's Stock Plunges, As Disappointing Results Prompt Price Target Cuts

Zynga Inc.'s stock plunged 12% on heavy volume in premarket trade Friday, as a number of Wall Street analysts lowered their price targets in the wake of the social game developer's disappointing results and outlook. "We have limited transparency into the company's forward pipeline, and seemingly obvious potential hits like "FarmVille 2" for mobile have disappointed outlier performance expectations," analyst Mike Hickey from Benchmark wrote in a note to clients. He trimmed his target to $2.36 from $2.45. Canaccord Genuity's Michael Graham cut his target to $2.50 from $4, Credit Suisse's Stephen Ju lowered his target to $2.92 from $3.24 and Tony Wibble at Janney Capital Markets cut his target to $2.25 from $2.50. The stock has lost 44% over the past year through Thursday, while the S&P 500 has gained 14%.