Investors outraged with Playtika: an investigation into stock collapse started

According to the professional portal App2Top, the investors of Playtika have initiated an investigation against the company.

  • The cause was a tremendous decrease in stock price after its Q3 2021 financial statement was published. You can see it in this graph.
  • The financial result appeared to be below the expectations: $635 million in revenue instead of $661 million, as the investors expected. Earnings per share were also below the expected: $0.05-$0.2 instead of $0.25.
  • One of the possible causes here is a change in the Apple iOS privacy policy: it caused problems for dozens of companies, including large social media like Snapchat and Facebook. But the Playtika management assured any changes at Apple would not affect the company’s income.
  • Moreover, it is not the first time the investors are not satisfied with the quarter results. According to the Q1 statement, the revenue was higher than expected by $57 million, but the earnings per share were below the expected: $0.09 instead of $0.13.
  • The stock fell by 25%, down to $22 per share, and it is below the initial stock offering price of $27, so the investors got losses.

Playtika refused to comment on the situation.