Zynga Inc (NASDAQ:ZNGA) shares are dropping along with rival social game developer King Digital Entertainment PLC (NYSE:KING). By Wednesday midday, shares of Zynga were down 6.2% to $3.48 (before closing 4% down) and King declined 11.8% to $16.54 (was down 13.38% at close). Interestingly, gaming giants like Activision Blizzard, Inc. (NASDAQ:ATVI) and Electronic Arts Inc. (NASDAQ:EA) have hit fresh highs when relatively new companies like Zynga and King are losing the confidence of investors.

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Activision and EA trading high

For the latest quarter, Zynga Inc (NASDAQ:ZNGA) posted earnings per share of ($0.01), which was in line with the consensus estimate. Revenue for the company came in at $168 million for the quarter compared to the consensus estimate of $147.52 million. King Digital Entertainment PLC (NYSE:KING) reported a decline in the quarter on quarter monthly unique users, the segment where it earns the largest chunk of revenue. Paying customers dropped 2% to just under 12 million.

Both Activision and Electronic Arts posted better than expected results. Shares of Activision surge 8.8% to 21.01 on Wednesday, whereas Electronic Arts ran up 21% to 33.95. On Wednesday, EA has hit the highest point in the time span of five years and Activision is very near its all-time high of $21.50.

Activision and Electronic Arts ire drawing maximum benefit from the launch of new consoles from Microsoft as well as Sony Playstation 4. Other revenue streams of the companies include mobile games and digital downloads with paid and free to play games.

Zynga VP sell shares

Separately, Zynga Inc (NASDAQ:ZNGA) VP Devang Shah offloaded 2,360 shares on the open market in a transaction dated Monday, May 5th. He sold shares at an average price of $3.86 for a total value of $9.109.60. After the transaction, vice president holds 106,210 shares in the company, valued at approximately $409,971, says a filing with the SEC.

Benchmark Co. raised their price target on Zynga from $3.46 to $3.52 in a research note on Thursday, April 24th. Barclays assigns an Equal Weight rating to the stock with a price target of $5.00 in a recent research note. CanaccordGenuity has assigned a Hold rating on Zynga, raising the price target from $4.40 to $5.00 in a research note to the investors on Thursday,April 24th. Overall, Zynga Inc (NASDAQ:ZNGA) has an average rating of Hold and a consensus price target of $4.62.