Zynga stock price jumps 7% as new chief executive replaces Pincus

Zynga’s founder has stepped down from his role as chief executive officer for the second time, and this has Wall Street thrilled.

The social-gaming publisher’s stock price is up around 8 percent in after-hours trading to $2.31 after finishing the day at $2.16. This is a sign that investors are happy to learn that former Electronic Arts executive Frank Gibeau is replacing Mark Pincus as chief executive officer. After dominating gaming on Facebook for years with hits like FarmVille, Pincus failed to transition Zynga’s success to mobile as the market shifted to smartphones and tablets. The ex-CEO oversaw a period where Zynga shed 85 percent of its stock value since 2012. Now, the market is hoping that Gibeau, who has had success on mobile with EA, can patch things up.