Zynga has big problems

Zynga shares have fallen almost 12% in just one day. The reason for the fall was a study Cowen & Co, according to which it became known that in just one month, Zynga lost 5 million of its users who traded Facebook games for mobile entertainment.

According to a representative of the analytical firm Cowen & Co by Doug Creutz, the number of daily users who spend time in Zynga games has decreased by almost 5 million in a little less than a month. Kreutz claims that Zynga’s management is powerless in the current situation: it is unable to retain users in its projects who are gradually switching to mobile platforms.

According to the analyst’s calculations, today the audience of Zynga is 54.2 million people. This is almost 4.8 million less than in May 2012. The company’s most unprofitable project turned out to be Hidden Chronicles, which was abandoned by 1.8 million players. At the same time, Kreutz noted that the release of the game Bubble Safarai was quite successful. 5.7 million gamers log in to it every day.

The expert believes that the mobile app market is to blame for what is happening, which is “pulling the blanket over itself” from Facebook. 

Thanks a lot to this report Kreutz shares of Zynga fell by almost 12% on June 12.

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