How low can Zynga's stock go? Below the total value of the cash it has on hand, the securities it owns, and the amount it paid in March for its San Francisco headquarters, according to J.P. Morgan analyst Doug Anmuth.
Combined, those assets are worth $2.46 per share, Anmuth wrote in a report released Thursday night. In afternoon trading Friday, Zynga stock was at $2.35, meaning Wall Street is valuing the social and mobile game company's business at, essentially, nothing.
The 16% drop in Zynga's already battered stock price came after the company warned Thursday that its 2012 financial performance would be below previous projections and that it is taking a write-down of $85 million to $95 million on its acquisition of "Draw Something" game maker OMGPOP in March for $180 million.
That disclosure was quickly followed by a series of negative reports from analysts.
"The outlook for [the fourth quarter] is significantly lower than our expectations, which assumed some growth from newer titles launched this summer," wrote Anmuth. "We expect fundamentals to remain weak over the next few quarters as the company faces several headwinds."
Sterne Agee analyst Arvind Bhatia said he expects to see "significant" layoffs in the coming months. "The magnitude of the guidance reduction was surprising and indicated the extent business has deteriorated," he wrote.
Wedbush Morgan analyst Michael Pachter lowered his price target for Zynga's stock from from $7 to $4 a share. Which does, at least, value its video game business at something.