Playtika was investigated by its own investors. They accused the company of violating the US Securities Act. The reason was the fall in the value of shares after the publisher reported for the third quarter.
The American firm Law Offices of Howard G. Smith is investigating the situation on behalf of investors.
Recall that Playtika published the results of the quarter last week. They differed from the predicted ones. For example, the company’s revenue was $635.9 million instead of the expected $661.97, and earnings per share was $0.09 instead of $0.13. Also, Playtika’s net profit in the third quarter of 2021 was almost half less than a year ago.
It is assumed that the indicators could have decreased due to the fact that Apple has updated the privacy policy on iOS. Despite the fact that these changes made some mobile advertising less effective, Playtika claimed that they would have little impact on its revenue.
All this has led to the fact that the company’s shares have fallen by 25.4% this year. If the price of one share was $27 at the start of trading, now it has fallen to the level of $22 per share. Such a situation could not but excite investors who, in fact, lost money on the purchase of securities of a gaming company.
The fall in shares, as well as the report on the investigation, Playtika did not comment.
It should be noted that in January, Playtika held the largest IPO among Israeli companies. As part of it, the mobile publisher raised $1.88 billion.