Zynga shares have plunged more than a third in after-hours trade as the online social games maker badly missed earnings expectations.
Shares slid 38 per cent to $US3.16 in reaction to the news of a $US22 million ($A21.58 million) loss for the company, which went public last year at $US10 a share.
The net loss for the second quarter amounted to three cents a share.
Adjusted for special items, Zynga showed a profit of one cent per share, far below Wall Street expectations of six cents.
Jon Ogg at 24/7 Wall Street said that in addition to the weak results, Zynga offered "poor guidance" for the current quarter.
"The young company has been gutted since its IPO," Mr Ogg said, noting that shares had been "barely above $5.00 after having traded above $15.00 briefly at its recent peak".
"The world is just over its love affair of web 2.0 (or it is 3.0 yet?) companies with complex share structures and new-age leadership," Ogg added.
Zynga, which grew out of a game platform on Facebook, reported revenue of $US332 million ($A325.70 million), up 19 per cent year-over-year.
"The company achieved some significant milestones in the quarter including the launch of Bubble Safari, which is now the number one arcade game on Facebook, and the launch of The Ville, now the number two game behind Zynga Poker," Mark Pincus, Zynga chief executive and founder, said.
"Our advertising business continued to show strong growth with revenue up 170 per cent year-over-year. Our games reached record audiences, achieving over 300 million monthly active users."
But he said Zynga faces "new short-term challenges which led to a sequential decline in bookings."
"Despite this, we're optimistic about the long-term growth prospects on mobile where we have a window of opportunity to drive the same kind of social gaming revolution that we enabled on the web," he said.
The internet company jumped into the stock market with a billion-dollar listing in December.
Offering 100 million shares - one-seventh of the company's total - at $10 each, the maker of FarmVille and Zynga Poker was valued at a whopping $7 billion, but has since been cut in half.