UPDATE: Hudson Square Research Downgrades Zynga to Hold Post Q2 Report

Hudson Square Research reduced its rating on Zynga (NASDAQ: ZNGA) from Buy to Hold following the review of second quarter results.

Hudson Square Research commented, "Yesterday after the close, Zynga reported results beneath our recently reduced estimates and management cut revenue guidance by nearly 20% and profit guidance by 50%. While as a general rule, we prefer to avoid rating changes after the fact, the significant erosion in fundamentals, and a very material increase in uncertainty in the model of what we label: selling games to non gamers, leads us to downgrade Zynga from Buy to Hold."

Zynga closed at $5.08 on Wednesday.