MarketWatch First TakeMore 'Ville' games at Zynga irk investors
6/26/12 5:31 PM ET (MarketWatch)
SAN FRANCISCO (MarketWatch) --
The social-gaming company hosted a big event on Tuesday, where it unveiled Zynga.com, its new website and gaming platform, that seeks to lessen its dependence on Facebook Inc. At the same event, Zynga (ZNGA) also talked about plans to open up more of its network to other game developers and unveiled several new titles, including two additions to its "Ville" games. Read more about Zynga's games.
But its shares started to tumble in the afternoon, tumbling nearly 5% before the market closed, as the company's new games appeared to disappoint investors. Among the offerings: the Ville, a house-based social game and ChefVille, a social cooking game.
Ahead of the event, PiperJaffray analyst Michael Olson wrote in a note that one of the issues currently impacting Zynga's shares was a "lack of investor excitement for the current portfolio and future pipeline." The company's shares are still far below its IPO price of $10.
Investors expecting to become more enthusiastic about Zynga based on new games or what's in the pipeline clearly did not get what they were hoping for and voted with their feet.
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