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Zynga stock plunges

Reports loss of $23 million.

Zynga have been under some scrutiny lately, and when their latest report came in well below market expectations the stock plunged 34 percent (at one point it was down 40 percent).

The lone bright side was that revenues were up 19 percent to $332 million, while they reported a loss of $23 million for the quarter and lowered the full year expectations. Zynga blames the challenging atmosphere on Facebook for some of its problems, but noted that Bobble Safari and The Ville were doing well.

The question the market is faced with is how sustainable the Zynga model is longrun, and if the drop off in bookings is a sign of things to come.