What Happened?
Shares of digital casino game platform PlayStudios (NASDAQ: MYPS) fell 11.6% in the morning session after the company reported disappointing third-quarter results that missed Wall Street's expectations for revenue and earnings.
For the third quarter of 2025, revenue fell 19.1% year-on-year to $57.65 million, falling short of analyst estimates. The company's loss per share widened to $0.07 from $0.02 in the same period last year, a result that was also significantly below consensus forecasts. The weak performance was underscored by other key metrics, with Adjusted EBITDA missing expectations by 28%. Adding to the concerns, the number of daily active users declined by 750,000 year-on-year, highlighting challenges with player engagement.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy PlayStudios? Access our full analysis report here.
What Is The Market Telling Us
PlayStudios’s shares are extremely volatile and have had 44 moves greater than 5% over the last year. But moves this big are rare even for PlayStudios and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 8.1% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
PlayStudios is down 57.8% since the beginning of the year, and at $0.80 per share, it is trading 64.2% below its 52-week high of $2.23 from December 2024.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free for active Edge members and will only take you a second.
