Playtika rises in investor estimations despite poor financial performance | Pocket Gamer.biz
Israeli mobile game developer and publisher Playtika has continued to rise in investor’s estimations, despite slim financials.
As reported on a number of investment outlets, firms have upgraded the projected performance of Playtika’s stock in their estimations with the stock anticipated to perform better in the near to mid-term future. The result of the revision is that these firms are now encouraging stockholders to buy rather than hold, and that major stockholders such as pension funds and other investment firms will be more willing to buy.
Playtika recently halted all development on new titles in favour of focusing on the growth of their existing catalogue. However, the company has sought to bolster this existing portfolio with a number of acquisitions, such as Youda Games, mainly focusing on the social casino titles that have nevertheless underperformed as in their recent finances.
The company has previously seen their stock upgraded from “underperform” to “neutral” earlier this year.
What’s next?
For those already invested in Playtika, the rise of the company in other investor’s estimations will be encouraging as it means that, additionally, stocks should rise as a result of more buyers. However, if Playtika’s results continue to come up short, even while outperforming predictions, then this will doubtless have an effect on their share price in the future.
Although the company has pursued an aquisition strategy to bolster growth following their underperformance, drops in player numbers are still concerning.
In the near future its expected that Playtika to continue their strategy of focusing on acquisitions rather than new developments to grow their catalogue, and a continued approach of building on their existing success. Given that Playtika was tipped to be a potential buyer for Rovio during their search for acquisition, it’s clear that the company is willing and able to spend big money on building out their already impressive portfolio.
