Embracer Group dropped from top stocks list by S&P | Pocket Gamer.biz
Embracer Group has taken another hit as it has been dropped from multiple S&P lists, including their Europe 350 and Global 1200.
While this does not mean their stocks will not be affected directly, these lists are used to offer investors insight into top performers or stocks the financial services companies have deemed to be worthwhile investments. As a matter of course, this means that Embracer is likely to see less favorable activity and thus market value, further putting pressure on the company.
Standard & Poor’s is an American financial services company that regularly publishes analyses and insights into the global financial market. This includes their regional and global lists of stocks that many traders use to inform their purchases or sales of stocks, and are usually seen as endorsements of a stock’s appeal for traders.
Earlier this year Embracer released frosty financials that, on their own may not have been terrible news – as they came at the same time as record sales for developers under their umbrella such as Deep Silver. But, the collapse of a planned $2bn deal the night before the financials were published plunged the company into uncertainty, coupled with planned layoffs across multiple holdings, and Embracer has been placed firmly on the back foot.
Damned if you do…
It’s certainly hard to deny that Embracer is in a much worse position than it was a year ago. With their stocks down almost 65% year-on-year, the company has been under pressure internally and externally to cut costs and chart a course to profitability. It could be judged that the company’s radical plan of acquisitions and purchases across the gaming industry was unsustainable.
In the near future it’s not clear what Embracer’s fate will be. But with layoffs and restructuring already underway, CEO Lars Wingefor has already confirmed this is far from over. For the moment it will be an uphill battle for Embracer to once again establish itself as a leading figure in the gaming industry.
