PLAYSTUDIOS, Inc. (NASDAQ:MYPS) has received a significant downgrade from Zacks Research, which revised its rating from “hold” to “strong sell” in a report released on November 3, 2023. This change reflects a growing concern among analysts regarding the company’s financial performance and future outlook.
In addition to Zacks’ assessment, other research firms have also expressed caution about PLAYSTUDIOS. Weiss Ratings reaffirmed a “sell (d-)” rating on the company’s shares, while Benchmark adjusted its price target from $2.00 to $1.50, maintaining a “speculative buy” rating. Overall, two analysts have rated the stock as a Buy, one has given a Hold rating, and three have categorized it as a Sell. According to data from MarketBeat, the current consensus rating for PLAYSTUDIOS is “Reduce,” with a consensus target price of $2.00.
Recent Earnings Report and Financial Performance
PLAYSTUDIOS recently announced its earnings results for the quarter ending November 3. The company reported an earnings per share (EPS) of ($0.07), falling short of analyst expectations that had anticipated a loss of ($0.02). Revenue for the quarter was $57.65 million, which also missed forecasts of $58.77 million. The company recorded a negative net margin of 15.10% and a negative return on equity of 8.66%. For the fiscal year 2025, PLAYSTUDIOS has provided guidance indicating expectations for an EPS of (0.17).
Institutional Investors’ Activity
Recent activity among institutional investors and hedge funds has also influenced the stock’s performance. In the second quarter, Quadrature Capital Ltd acquired a new stake valued at approximately $49,000. During the third quarter, Williams & Novak LLC increased its holdings by 68.7%, now owning 82,450 shares worth about $79,000 after acquiring an additional 33,590 shares.
Meanwhile, GSA Capital Partners LLP raised its position by 211.0%, bringing its total to 86,999 shares valued at $84,000 after adding 59,028 shares. Ieq Capital LLC purchased a new stake in the first quarter amounting to $97,000. Notably, NewEdge Advisors LLC increased its stake by an impressive 5,260.6%, now owning 134,015 shares valued at $170,000 following a purchase of an additional 131,515 shares.
Currently, institutional investors and hedge funds collectively own 37.52% of PLAYSTUDIOS stock, highlighting a notable level of interest and involvement from institutional players in the company’s future.
About PLAYSTUDIOS
Founded in the United States, PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games primarily for mobile and social platforms. The company’s portfolio includes a variety of titles spanning social casino, card, puzzle, and adventure genres. Popular games include POP! Slots, myVEGAS Slots, my KONAMI Slots, MGM Slots Live, myVEGAS Blackjack, myVEGAS Bingo, as well as recognized titles such as Tetris, Solitaire, Spider Solitaire, Jumbline 2, Sudoku, and Mahjong.
As analysts continue to assess the company’s trajectory following these developments, investors are urged to closely monitor the evolving situation surrounding PLAYSTUDIOS and its market performance.
