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