Zynga shares slump as Facebook changes raise concerns
Thu Jul 26, 2012 6:28pm IST(Reuters) - Shares of Zynga Inc fell in premarket trading on Thursday, after Facebook Inc made it harder to find games such as "FarmVille", sparking concerns that its results were unlikely to improve anytime soon.
A slew of analysts cut their ratings and price targets on shares of Zynga, which slashed its outlook and reported lower-than-expected quarterly results on Wednesday.
"The biggest factor impacting current performance appears to be the way Facebook is surfacing gaming content on its platform," JP Morgan's Doug Anmuth wrote in a note to clients.
Surfacing refers to how a website showcases content.
Facebook recently tweaked the way users find games in its app center -- giving prominence to newer titles and pushing down older games -- making it difficult for users to find older, popular titles from Zynga.
Shares of Zynga started sliding in post-market trading after the company reported results and were