Updated: Trades In Zynga Frozen On Steep Declines After Facebook Opens
Shares in social gaming company Zynga, which Tech.li recently covered in an expose, are frozen after 13 percent declines. Heavy downside volume triggered Nasdaq’s so-called “circuit breakers,” which the exchange put in place after the Flash Crash of 2010.
Rolfe Winkler speculated:
$ZNGA collapsed when $FB opened. Off 13%. Maybe no one wants to own a $FB proxy now that they can own $FB??
Zynga’s social gaming business relies heavily on Facebook as a distribution network. Declines in Zynga shares could be a market reaction to Facebook’s initial 13% pop, or these declines could simply reflect investors’ decisions to dump a once-hot social tech stock in search of greener (or bluer) pastures.
As this is a developing story, we will update you when more news hits the wires.
Update: Trading in Zynga have resumed.