Zynga, Fusion-IO: Tech Winners & Losers
NEW YORK (TheStreet) -- Zynga(ZNGA) plummeted 10.27% to $4.98 on Tuesday, hitting its lowest share price since the company's IPO in December of last year. The game producer is down almost 50% year to date.
Nasdaq halted short-sales of the stock after Cowen & Co released a report that said Zynga's social gaming daily active users dropped by 8.2% in May.
All of the company's major titles posted "significant" month-over-month declines in daily active users, according to Cowen & Co analyst Doug Creutz. May marked the second consecutive significant month-over-month drop.
"We believe that interest in Facebook-based gaming may have reached a negative inflection point, as more casual gamers migrate to mobile platforms," Creutz wrote, according to a Reuters report.
Analysts at Piper Jaffray set Zynga's 12-month price target to $13 per share. They noted that the "unpredictable, hits driven nature of the social games business" may "prove difficult to consistently deliver popular games."
Zynga was also one of Nasdaq's most active stocks at the end of Tuesday on share volume of 57.4 million.
Fusion-io(FIO) , however, soared to close at $18.59 per share - a 5.57% increase. The storage memory platform announced that it had secured an Original Equipment Manufacturer (OEM) relationship with with Cisco Systems(CSCO) on Monday.
Fusion-io's ioMemory will be used in the blade servers of Cisco's Unified Computing System (UCS), which was launched amidst much fanfare in 2009.
--Written by Nathalie Pierrepont in New York.
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