Zynga has lost about 39% of its market cap from Wednesday's close. The loss in share price is primarily from the surprising earnings miss and a failure to demonstrate reasonable earnings are on the horizon.
Thursday's move didn't break through any support levels because there are none. Thursday's open was an all-time low. The widely watched 200-day moving average doesn't come into play because Zynga hasn't traded for at least 200 days. Zynga is oversold on the daily and the weekly charts, but without a support level it's make or break time.
Insiders sold shares faster than a dog chases a tennis ball. In the last six months, insiders sold over 20 million shares. It's a safe bet the end of the lockup period was circled on more than one insider calendar.It's not clear management believes in the stock.(See
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