Square Enix has risen quite a bit, off the back of 3D Investment partners buying 10%+ stake. I can't see the logic in them bidding this up so much. Their cash cow FFXIV's latest expansion Dawntrail hasn't done well. Playerbase is still sticky so it'll continue to be their main cash cow, but these multiples seem nutty. Considering shorting them for the first time in forever.
Insightful conclusion to an insightful series. Thanks! :-)
Square Enix has risen quite a bit, off the back of 3D Investment partners buying 10%+ stake. I can't see the logic in them bidding this up so much. Their cash cow FFXIV's latest expansion Dawntrail hasn't done well. Playerbase is still sticky so it'll continue to be their main cash cow, but these multiples seem nutty. Considering shorting them for the first time in forever.
Almost twice the price as when I wrote this on arguably worse results and a lacklustre slate of releases, can't fault your conclusions.
My guess is that the hope here is a "turnaround" to be very efficient in the game segment. But I don't see signs of that.