Social and mobile game maker Zynga reached a dubious milestone last week: the company's stock dipped below the total value of its assets and real estate, reports the LA Times.
J.P. Morgan analyst Doug Anmuth said in a report that the estimated value of Zynga's cash on hand, securities, and the amount it paid for its San Francisco headquarters are worth $2.46 per share. Last Thursday, after the company announced preliminary financial results and lowered its annual expectations, Zynga shares dipped below $2.25. They've rebounded slightly since, but ZNGA is currently trading below that $2.46 figure.
Anmuth said that Zynga performed worse than J.P. Morgan's expectations, according to the LA Times report, and to "remain weak over the next few quarters as the company faces several headwinds."
"We're addressing these near-term challenges by implementing targeted cost reductions in the fourth quarter and rationalizing our product R&D pipeline to reflect our strategic priorities," said Zynga CEO and founder Mark Pincus following the preliminary financial results. "At the same time, we are continuing to invest in our mobile business where we have one of the strongest positions in the industry. These actions support our strategy to transition from being a first party web game developer to a multiplatform game network. We remain optimistic about the opportunity for social gaming and the power of our player network of 311 million monthly active users."
Zynga plans to release its full third quarter financial results on October 24th, 2012.
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