Ubisoft Stock Plummeted Over 40% In 2024 After Numerous Disasters Including 'Star Wars Outlaws' 'XDefiant,' And 'Skull And Bones'
Ubisoft’s stock plummeted over 40% in the last year after numerous commercial disasters including Star Wars Outlaws and Skull and Bones.
The company’s stock price closed 2024 at just €13.15 after closing 2023 at €22.39. That’s a 41.2% decline.
The company’s market cap has declined from $2.94 billion to around $1.68 billion.
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If one looks back even further, the picture gets even grimmer. At the end of December 27, the stock price was €78.74. That means the stock price has declined 83% since December 2020.
Looking at the market cap, it was $9.7 billion at the end of December. As noted above, it is now around $1.68 billion.
2024 was a horrible year for Ubisoft. In the company’s most recent financial report released at the end of October, the company reported its net bookings were down nearly 22% compared to the same time frame last year. The company only had net bookings of €642.3 million compared to €822.4 million.
It also noted that “net bookings for the second quarter of 2024-25 totaled €352.3 million, down 36.5% (or 36.3% at constant exchange rates ) compared with the €554.8 million recorded for the second quarter of 2023-24.”
In that report it admitted that Star Wars Outlaws “underperformed sales expectations.”
A little over a month later it announced it was shutting down XDefiant. A press release stated, “Ubisoft announced that it will discontinue development on XDefiant, its free-to-play first-person shooter title. The decision follows a thorough review of the game’s performance, profitability, and market conditions, and aligns with the company’s increased selectivity in its R&D investments.”
It was also previously rumored that Ubisoft shut down its Prince of Persia: The Lost Crown development team. Still another rumor claimed that its Skull and Bones game cost between $650 and $850 million.
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The company also delayed its mobile releases The Division Resurgence and Rainbow Six Mobile as well as its upcoming Assassin’s Creed Shadows game to 2025.
On top of all of this, AJ Investments called on the company to sell the company or take it private and even accused it of “discounting potential value” alongside Tencent.
The firm stated, “We believe that Guillemot family and Tencent are discounting potential value of Ubisoft in order to buy more shares at lower valuation and eventually take full control of the company at heavily discounted valuation.”
What do you make of Ubisoft’s stock collapse in 2024?
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