Right now plenty of folks at Zynga are likely wishing this whole stock market thing was just a big social game.
As Facebook debuted on the Nasdaq this morning, the social game maker, which both enjoys and endures a symbiotic relationship with Facebook, saw its own stock fall off a cliff, dropping 13 percent, or $1.10 a share. That drop brought the stock to a new all-time low of $7.17 and triggered a freeze on trading of Zynga shares.
Facebook's IPO started trading today after a half-hour delay due to technical problems at $42 a share and then quickly began to drop back down towards its initial price of $38.
"We believe a certain amount of premium was built into the shares of companies such as Zynga, Groupon, and Yelp due to the anticipated success of a Facebook IPO," Morningstar analyst James Krapfel told MarketWatch. "Now that the catalyst failed to materialize, shares are taking a hit. "
Trading of Zynga stock was halted around 11:38 am due to a volatility circuit breaker that typically lasts five minutes, however trading remained stalled and did not resume until about 45 minutes later, when it began to make up some of the ground lost earlier in the morning.
Updated at 9:50 am to reflect resumption of trading and add analyst quote.
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