Playstudios Q3 Earnings: Profitability Set To Rise Even As Revenue Continues To Decline

Nov. 12, 2024 4:59 AM ETPLAYSTUDIOS, Inc. (MYPS) StockMYPS
Sandeep Nital David
481 Followers
(7min)

Summary

  • Shares are up more than 10% following the Q3 earnings release.
  • Given the challenges to returning to organic growth, management has undertaken a strategic restructuring to reduce expenses and improve profitability.
  • The current valuation appears undemanding, with the company’s net cash representing more than half the current market cap.
  • Given the risks involved, I retain my Hold rating on the stock.

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MARHARYTA MARKO

Investment thesis

In my previous write-up on Playstudios (NASDAQ:MYPS) following its Q2 results, I downgraded the stock from Buy to Hold due to growth concerns and the lack of near-term catalysts. Its Q3 results reinforce these concerns, showing

This article was written by

481 Followers
An individual investor primarily focused on undercovered companies, with more than 50 companies on my watchlist. My areas include technology, software, electronics and the energy transition. I have been investing my personal capital for over 7 years in a broad range of companies globally. Through my years of analyzing countless companies, I have accumulated professional investment experience within my circle of competence. I have a Masters degree in Electrical Engineering and currently work as an automotive battery RnD engineer in Sweden. My write-ups on SA are a good way for me to layout my investment thesis on companies and receive feedback from the broader investing community. I enjoy diligently studying and researching small to mid cap companies which are often researched to a lesser extent by others. Through my analysis of numerous companies, I seek to identify asymmetric investment opportunities with the goal of achieving market beating returns.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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