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Zynga just delivered a terrible earnings report, and now Facebook is feeling it.The stock is down 7% in after-hours trading after Zynga told investors use of web-based games, a.k.a. Facebook games, is declining faster than expected.
Since a decent chunk of Facebook’s revenue comes from Zynga’s games, this is terrible news for Facebook.
Facebook reports earnings tomorrow night, so we’ll get a better idea of the impact then.