As announced, 11 Bit Studios, the gaming second-tier stock I hold $11B (-1,52 %) has, as announced, stopped one of its projects worth around PLN 50 million.
This corresponds to around 8% of the market capitalization. The shares fell by over 30% as a result. It has now been four days. And once again one wonders whether the market is actually completely stupid. A write-down of PLN 50 million wipes out over PLN 200 million in market capitalization, which can already be seen as a downward exaggeration.
And even funnier: the whole thing happened only 4 days ago. Today, the write-down was confirmed and the share price fell by double digits again. So what did the market participants think? That they were just pretending? They don't say in an official announcement that they are considering stopping a project and then not doing it anyway.
I maintain that you have to wait for the quarterly figures instead of building castles in the air. The fact is that the blockbuster Frostpunk 2 has sold well so far and the mood in the community has improved with the latest updates. In the last 30 days, the game has received 89% approval (previously 75%).
With The Alters, a new blockbuster candidate is already in the starting blocks. With 40,000 followers, the game is significantly smaller than the established Frostpunk 2, but has received extremely good feedback so far with an approval rating of around 92%.
I will therefore be adding the share to my buy list again.