Embracer Group Faces Setback as Dropped from S&P Top Stocks Lists
Embracer Group has suffered a blow as it has been removed from multiple S&P lists, including the Europe 350 and Global 1200. While this does not directly impact their stocks, these lists are utilized by investors to identify top performers or stocks that financial service companies consider worthwhile investments. Consequently, the removal from these lists is likely to result in less favorable market activity and put additional pressure on Embracer Group.
Standard & Poor’s, an American financial services company known for its insights into the global financial market, regularly publishes regional and global lists of stocks that traders often rely on to inform their investment decisions. These lists are generally seen as endorsements of a stock’s appeal.
Earlier this year, Embracer Group reported lackluster financial results. Although these results were offset by record sales for their associated developers such as Deep Silver, the company’s volatility was exacerbated by the collapse of a planned $2 billion deal. This was further compounded by planned layoffs across multiple holdings, leaving Embracer Group in a precarious position.
Damned if You Do…
There is no denying that Embracer Group is in a considerably worse position compared to a year ago. With their stocks experiencing a nearly 65% year-on-year decline, the company has faced internal and external pressure to reduce costs and devise a path to profitability. The sustainability of the company’s aggressive strategy of acquisitions across the gaming industry has come into question.
Embracer Group’s future remains uncertain. With ongoing layoffs and restructuring efforts, CEO Lars Wingefor has stated that this is far from over. The road to reestablishing Embracer Group as a prominent player in the gaming industry is an uphill battle for the company.