OMG — pop! That may be the sound of the tech bubble bursting.
Silicon Valley’s hottest companies — ranging from Apple to Zynga — have turned into investment bummers following a steady drumbeat of disappointing results.
While they run the technology gamut from gaming to gadgets, the companies all fell short after reporting slowing growth instead of skyrocketing trajectories.
Facebook met already lowered expectations yesterday, but Wall Street still punished the stock, sending the shares down nearly 12 percent in late trading.
Even before the results, Facebook was taking a pummeling along with partner Zynga, which depends on developing hit games for the social network such as “FarmVille.”
In March, Zynga paid $200 million for drawing game Omgpop after its popularity had peaked.
Zynga, which went public at $10 a share in December, plunged 37 percent yesterday to a new low of $3.18 after it badly missed expectations.
“A big part of it is that these companies provide limited guidance and the investor base doesn’t pay much attention to fundamentals as they should,” said Brian Wieser, an analyst at Pivotal Research Group. “When reality hits it’s a problem.”
Netflix boss Reed Hastings prepped the market for a big quarter after he boasted of record streaming viewership in June. But once the earnings were out, investors weren’t impressed. The stock hit a 52-week low of $56.14 at one point before closing at $57.01.
And even Apple fell from grace. The company posted a rare miss after it failed to sell enough iPhones to satisfy investors, sending the shares skidding.
