Zynga isn't doing so well it seems. It reported its second quarter earnings on Wednesday and the results don't look good, falling short of analyst estimates for both revenue and earnings per share. Bare in mind this is Zynga's second quarter as a public company.

The stock is down nearly 40% after-hours trades at the the time of this writing. Looking at the results, its hard to find any bright spots for the social gaming giant. Zynga's revenue was $332 million, up 19% year over year, but falling short of analyst expectations. Bookings were down 8% compared with the first quarter of 2012.

Zynga also reported a net income loss of $22.8 million, thanks in part to a $95.5 million stock-based expense.

The company reported a diluted earnings per share (EPS) loss of ($0.03) for the second quarter and a non-GAAP (generally accepted accounting principles) EPS of $0.01.

In addition, Zynga adjusted its outlook for the rest of 2012 to “reflect delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something.”

Facebook stock is also down about 6% in after-hours trades. Is Zynga in trouble? Or is there a bubble in the midst?