CD Projekt Red shares are now down 25% over the last two months. The delays for Cyberpunk 2077 and the rumored crunch is eating away investor confidence.
According to a report, CD Projekt Red’s shares peaked two months ago, around August. The company is receiving sharp, and steady tumble as their hotly anticipated game moved back again. Studio conditions are also making investors question their stability.
Studio hits the peak market share last August
Back in late August, CDPR had a market cap that amounted to 42.4 billion Polish zlote. The value amounts to $10.7 billion, with an individual share price of 416 zlotych or $116.50.
August’s peak has a lot to do with the state of affairs of CDPR that month. At the time, the studio released a Witcher AR title, similar to Pokemon Go. Cyberpunk 2077 is also getting a ton of media hype and seems ironclad on its release date.
It seems the bubble popped on the company right now. Investors are unsure of what is happening within the company, and it shows.
By the end of October, the shares for the company are playing around 331 to 335 zlotych. This value amounts to about $85, estimated at 25% to 27% lower than August. So far, negative press and uncertainties within the company are a significant issue.
Much of CDPR’s value comes from how it works with the media and perception of the company’s capabilities. Both actual and potential share values all come from how the world sees their work.
CDPR value changes depending on the nature of publicity
CD Projekt Red’s shares are fickle, for good or bad. Their value depends on how the world sees their competence as a game developer.
For starters, CDPR shares started skyrocketing from positive Cyberpunk 2077 news. It also comes from the positive takes on Witcher titles, including the mobile game and the Netflix series. The same can be said about the drops in their value.
The recent controversies about the Polish studio are making investors hesitant. For starters, the delay of CP2077 makes people unhappy about the company’s position. Another delay from the company will likely be a costly decision.
The crunch within the studio is making investors unhappy too. Co-CEO Adam Kicinski dismissed the crunch in their last financial call but used verbiage that felt out of touch. This didn’t sit well with everyone, which generated bad media yet again.
CD Projekt Red is bleeding money right now from the loss of share value. While people expect this to go up once Cyberpunk 2077 is out, its fickle nature makes long-term planning problematic.
Featured image courtesy of CD Projekt Red/Youtube Screenshot