Zynga Stock Plummets, Prompts NASDAQ 24-Hour Short Sale Ban

Posted on Jun 13 2012 - 11:48am by CONTRIBUTOR

Editor’s Note: Guest Author Pradeep Yadav, a technology lover, analyzer and  love reporting about different technologies.

The social Gaming Company Zynga seeing a huge drop in its share price at 13 percent down to $5 yesterday, prompting NASDAQ to apply a 24 hour ban on short sales of the company’s shares. The company hit a short sale breaker, an SEC rule that is triggered when stocks drop more than 10 percent from the closing price of the day before.

“We have been concerned that the company’s accelerated release strategy is simply resulting in more churn of existing users,” Cowen analyst Doug Creutz says. “However, we now additionally believe that interest in Facebook-based gaming may have reached a negative inflection point,” as users gravitate toward mobile platforms.”

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