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Facebook’s (FB) stock is plummeting today, and dragging Zynga (ZNGA) shares down with it.
Zynga develops web-based games, many of which appear on Facebook. So its fate is inextricably tied to the social network’s. The stocks are also intertwined, which is why Zynga shares are tanking today.
After pulling off what was the third-largest IPO in U.S. history, Facebook shares are tanking today. The stock is down 9.5% in mid-Monday trading, already dipping well below its IPO price.
Zynga was experiencing a similar fall until bouncing back in the last couple hours. The stock is now down just an even 1% for the day, but has fallen 14% since Facebook’s underwhelming debut on Friday. With the losses it has suffered over the last two trading days, Zynga’s stock is now down 24.5% in 2012.
The stock’s struggles are understandable. The company isn’t making money on its own, with a net loss of $404 million last year.
So Zynga shares could use a nice bounce-back from Facebook.