Why Zynga (ZNGA) Is Down Today

Update (4:15 p.m. EST): Updated with closing price, day high and low prices, price change and volume information.

NEW YORK (TheStreet) -- Zynga  (ZNGA) fell 12.16% to $3.54, down 49 cents from its previous close of $4.03, at the close of the trading day on Thursday after Sterne Agee said fourth-quarter consensus estimates may prove too high.

The stock had a volume of 79,738,300, nearly four times its average of 21,379,100. It hit a high of $3.99 and a low of $3.53 for the day.

The firm also noted that first-quarter guidance is "likely to disappoint," and that estimates for 2014 could prove too high. Sterne Agee has a "neutral" rating on Zynga.

"We are adjusting our Q4 Bookings/Adjusted EBITDA estimates to $130M/($18.1M) from $137M/($13.6M)," the firm said in its note. "We are also reducing our Q1 Bookings/Adjusted EBITDA Estimates to $116M/($17.2M) from $137M/($3.5M). Previously we had modeled Q4 to represent the "bottom" in terms of bookings declines, but now we are modeling Q1 to represent the bottom. Our full-year estimates for 2014 are unchanged."

Zynga announced on Friday through a post on its forums that it plans to shut down YoVille, its longest-running game, on March 31. Zynga is offering "special packages" to YoVille users who sign up for other Zynga games. YoVille players are upset enough to start a petition for the company to boycott all other Zynga games if the company does not keep YoVille

TheStreet Ratings team rates ZYNGA INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

If you liked this article you might like

Roku, Nucana and Other IPOs That Should Be on Your Radar in 2017

Now You're Hearing Apple Roar: Market Recon

Apple Rally Could Boost Dow to 22,000 - 5 Things You Must Know Before the Market Opens

Tesla and Apple Better Deliver Big-Time or Look Out Below -- Week Ahead

Midday Report: SiriusXM Makes Pandora Investment; U.S. Stocks at New Records