CDPR share value drops 75%

[Iferrebee]

I had no idea this was going on and am not surprised

CD Projekt's share value has reportedly plummeted 75 percent post-Cyberpunk 2077

CD Projekt - the publisher behind studio CD Projekt Red, developer of The Witcher games and, of course, Cyberpunk 2077 …

www.eurogamer.net

 

[kofeiiniturpa]

Maybe they should’ve put their eggs in a different basket with the game.

Just saying.

 

[Guest 3847602]

1) CDPR stocks were hilariously overvalued
2) value of their stocks is still more than two times higher than it was at the time when the final patch for TW3 came out

My suspicion is that the main reason why their stocks became so valuable in the first place is due to widely held expectations for Cyberpunk Online to be the "next big thing" after GTA Online.

 

[Spockprime]

The biggest portion of the drop happened shortly after the problems with CP2077 became widely recognized. The stock rebounded slightly, but never got back close to where it was. That being said, it's dropped by half again since April, and I don't know why.

 

[Notserious80]

Its probably like @ooodrin said, was very overvalued and the launch fixed it. Over/undervalued is quite common sadly on alot of stocks and a part of how they make money (the big stocktraders). The april results are probably due too similar things, 1.5 was out and still no GTA online for cp2077 in sight so it devalued further. Not sure when they hade there quarter rapport that said MP was kinda abandoned, wasent i around that time?

 

[GrimReaper801]

1) CDPR stocks were hilariously overvalued

This. Quite simply.

The stock were grossly overvalued, that bubble had to burst at one point or another. There is no denying that CP2077's poor release was the catalyst that precipitated the fall but it was bound to happen at some point.

With that said, I have no clue why the medias are suddenly going back to this. I mean, yes, I know that it's to generate traffic, but it's hardly news at this point and not the doom and gloom they try to portray it as.

 

[Martind_Forlon_]

doom and gloom they try to portray it as

... this is exactly what is article mentioned in OP about, imo one from the bad journalist attempts to gather views and bring some negativity (to fuel views even more). Practical usefulness zero.

 

[AvarageEnjoyer]

Remaining investors be like

 

[Restlessdingo32]

The Big Short 2.0. Wait, nevermind....

 

[AvarageEnjoyer]

But yeah, irony aside, hope they'll get their shit back together.

The biggest portion of the drop happened shortly after the problems with CP2077 became widely recognized. The stock rebounded slightly, but never got back close to where it was. That being said, it's dropped by half again since April, and I don't know why.

I think around that time they announced, that DLC will be released in 2023, which might or might not have caused investors to lose some faith. I might be wrong, but I think the news were around that time frame.

 

[CongoJack35]

I wonder if Sony or MS will do anything with the IP's after the acquisition.

 

[Iferrebee]

Got to hate when journalist post the truth and don't sprinkle rainbows on facts

 

[LeKill3rFou]

Published as a "News" on July 16, 2022... lol
(Yes, it's probably "a news" if you live in a cavern since the last 2 years...)

I mean, yes, I know that it's to generate traffic

Traffic yes, but above all :

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[Garrison72]

Cyberpunk has become the horror story in the entire industry lol. It's such a shame, but CDPR brought it on themselves. One has to wonder how long they'll actually stay 'independent'.

 

[Spockprime]

Published as a "News" on July 16, 2022... lol
(Yes, it's probably "a news" if you live in a cavern since the last 2 years...)

Traffic yes, but above all :

I think the "news" is that the price has fallen again, quite quickly. Whether that's actually news -- by now it probably isn't. July is 3 months out of date for it. Also, the ad blocker notice is irritating. It's why I run both an ad blocker and a script blocker. This forum is one of the few places I allow past the script blocker.

 

[LeKill3rFou]

Also, the ad blocker notice is irritating. It's why I run both an ad blocker and a script blocker. This forum is one of the few places I allow past the script blocker.

I'm not against ads, because like everything or almost, maintaining a website require money and money doesn't fall from sky... But as user, it let me choose which kind of content that I want to "reward" and this kind of content, I don't want

Anyway, to comeback to the subject, I'm not an expert but like @ooodrin said, everything above my "red" line (drawn at random, but which could represent a reasonable growth) seem to me to be totally out of control and far beyond all logic... And like @GrimReaper801 said too, like all the bubbles, it have to burst at some point, because it can't go up indefinitely for no reason... It's already happened plenty of time and in a way larger scale^^ (like "dot-com bubble").

 

[Azulath]

It's always funny when news sites try their best at the analysis of charts and usually fail horrendously. That being said, let's have a look at CDPR's chart:

And since we are at it, let's have a look at the S&P500:

How about the NASDAQ or FAANG:

If you have a look at all those stocks, it becomes obvious that all of them went significantly down since the start of 2022, the main reason being the rate hikes of the FED to combat inflation. Granted, CDPR is a Polish company and the FED is concerned with the US, but in investment it does not really matter where you live. You can invest in basically any company. So, when the narrative of easy money and easy credit became not so easy any longer, money was moving out of stocks, which also affected and still affects CDPR.

However, where CDPR still is different is that it started dropping before these other stocks and this drop coincides with the release of Cyberpunk 2077 at the end of 2019. Here, I would argue that the reception of Cyberpunk 2077 definitely was a contributing factor, but as other's have pointed out CDPR was already extremely overvalued and in trading there is this saying: "Buy the hype, sell the news.". Thus, I would argue that CDPR's stock would have seen a drop after the release of the game, albeit not such a significant one.

Due to the nature of the current market though, I doubt their current valuation would be much different.

 

[CokyRustler]

To anyone who knew the real story of CDPR behind the scenes: we all knew this was coming.
When your every project is badly mismanaged while becoming more and more ambitious, and you keep losing experienced people while your management starts believing this is "simply their way of doing things" ( their own words via tweet): it's only a matter of when you'll get this kind of disaster.
Though I honestly did not expect it would be this severe.
There have been far worse game releases, but, from an outside perspective, I've never seen management making this many poor decisions over the course of a single project.

Cyberpunk has become the horror story in the entire industry lol. It's such a shame, but CDPR brought it on themselves. One has to wonder how long they'll actually stay 'independent'.

It's usually not the case, but if after buyout their management goes into "early retirement" while studio retains large degree of creative freedom, this might be a change for the better.
I'm sceptical of any real, serious changes coming from their management. They all got nice, few million $ bonus even after this launch disaster ( interesting how they never put any specific conditions for themselves: unlike with actual game developers who usually need to meet a certain criteria like Metacritic score).
They have been in game development for almost two decades at this point and mistakes they've made on Cyberpunk are the same as they did on first Witcher game.

 

[Tvaroog]

CDPR haters get excited every time the stock value drops because they don't know how stock market works. People really believe that when stock is down 10% then CD Projekt has 10% less money in the bank Company's financials are public knowledge, they are in good shape. They hire new people, they work on two big titles at the same time, as they always planned. As somebody wrote above, there was expectation that CP2077 will become next GTA which was never realistic, add to that longest bull market in history and you have a lot of overvalued stocks. When hype for next Witcher game begins plus FED starts printing money again, stonks will go up. Edit: Just to be clear, this is just my personal opinion, not a financial advise

 

[davidxlongshot]

This. Quite simply.

The stock were grossly overvalued, that bubble had to burst at one point or another. There is no denying that CP2077's poor release was the catalyst that precipitated the fall but it was bound to happen at some point.

With that said, I have no clue why the medias are suddenly going back to this. I mean, yes, I know that it's to generate traffic, but it's hardly news at this point and not the doom and gloom they try to portray it as.

As you said, to generate clicks and traffic. The anger is still kinda fresh even if it was 2 years, a lot of distrust of CDPR and doubt against them. The media is exploiting this for, of course, EZ Money.