What Happened?
Shares of digital casino game platform PlayStudios (NASDAQ: MYPS) jumped 5.1% in the morning session after the stock rebounded as investors focused on analysts maintaining positive ratings on the company, even while they lowered their price targets. This move followed a sharp 11.6% drop in the previous session after the company reported disappointing third-quarter results, missing Wall Street's expectations for both revenue and earnings. In response to the weak report, Oppenheimer cut its price target on the stock from $5 to $2.50, though it kept its "Outperform" rating. Similarly, an analyst from Benchmark lowered the firm's price target from $2.00 to $1.50 but maintained a "Speculative Buy" rating. The rebound suggested that investors were encouraged by the maintained buy ratings, viewing the earnings miss as a temporary setback.
Is now the time to buy PlayStudios? Access our full analysis report here.
What Is The Market Telling Us
PlayStudios’s shares are extremely volatile and have had 44 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 11.6% on the news that the company reported disappointing third-quarter results that missed Wall Street's expectations for revenue and earnings. For the third quarter of 2025, revenue fell 19.1% year-on-year to $57.65 million, falling short of analyst estimates. The company's loss per share widened to $0.07 from $0.02 in the same period last year, a result that was also significantly below consensus forecasts. The weak performance was underscored by other key metrics, with Adjusted EBITDA missing expectations by 28%. Adding to the concerns, the number of daily active users declined by 750,000 year-on-year, highlighting challenges with player engagement.
PlayStudios is down 54.6% since the beginning of the year, and at $0.86 per share, it is trading 61.5% below its 52-week high of $2.23 from December 2024.
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