Candy Crush maker's stock plummets after bitter-tasting report

The online gaming company reported sales that missed estimates in the second quarter and cut its outlook for the year.

Shares of King Digital Entertainment fall more than 20% in after-hours trading

Investors are souring to the maker of Candy Crush Saga after the company reported a disappointing second quarter and scaled back its targets for the rest of the year.

Online game publisher King Digital Entertainment said Wednesday that sales rose 30 per cent to $593.6 million, but that was still far short of analysts' expectations of $605 million.

Users are also not buying up as many bonbons as they used to. Gross bookings — or the amount users spend on virtual items — fell 5 percent from the first quarter.

Stock melts in after-hours

The company's stock was down more than 20 per cent to about $14 a share in after-hours trading on the news.

King Digital went public in March at $22.50 a share. Since then, the stock has only closed above that IPO price once.

Investors have questioned whether King Digital is a one-hit wonder with its Candy Crush app, and can't enjoy similar success with its other games like Pet Rescue and Farm Heroes. King plans to launch a follow-up called Candy Crush Soda globally this fall.