Why Zynga (ZNGA) Stock Continues to Fall Today

NEW YORK (TheStreet) -- Zynga  (ZNGA) continued to fall Monday after the social gaming company's second-quarter earnings report last week that missed analysts' expectations.

The company broke even on earnings per share just as analysts had expected, but revenue declined 33.6% year-over-year to $153.2 million. Analysts polled by Thomson Reuters expected revenue of $191.2 million. Zynga reported 29 million daily active users in the second quarter, down from 39 million in the same period one year earlier. Monthly active users dropped year-over-year to 130 million from 187 million.

Zynga also cut its full-year EPS and revenue guidance. The company expects to lose a penny a share or to break even, while the Thomson Reuters consensus estimate calls for EPS of 2 cents. Zynga expects revenue in the range of $695 million to $725 million, less than analysts' expectations of $737.81 million.

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The stock was down 1.91% to $2.83 at 11:27 a.m. 

Separately, 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:

"We rate ZYNGA INC (ZNGA) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and disappointing return on equity."

You can view the full analysis from the report here: ZNGA Ratings Report

ZNGA Chart ZNGA data by YCharts

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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