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
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts