{"id":183315,"date":"2021-08-19T09:35:23","date_gmt":"2021-08-19T16:35:23","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=183315"},"modified":"2021-08-19T13:38:05","modified_gmt":"2021-08-19T20:38:05","slug":"playstudios-one-of-worst-de-spaced-stocks-of-past-year","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/","title":{"rendered":"Playstudios One of Worst-Performing De-SPACed Companies Over Past Year"},"content":{"rendered":"

Social casino developer Playstudios (NASDAQ:MYPS) became a publicly traded entity following a merger with a special purpose acquisition company (SPAC). It’s one of the worst-performing members of an expansive group that opted to go public that way.<\/p>\n

\"Playstudios\"
Staffers work inside the Playstudios Las Vegas headquarters. The stock has been pounded following its SPAC deal. (Image: The Nevada Independent<\/em>)<\/figcaption><\/figure>\n

Playstudios became a freestanding public company in June<\/a> after a merger with Acies Acquisition, a blank-check firm started by former MGM Resorts International (NYSE:MGM) CEO Jim Murren. Shares of the gaming company have been more than cut in half since June 21, the first day of trading. But it’s far from the only de-SPACed offender.<\/p>\n

Out of the 107 companies that completed their SPAC mergers to date in 2021, only 24 percent (26) are trading above their $10 IPO price,\u201d<\/strong> according to SPAC Track<\/a>.<\/p><\/blockquote>\n

When Murren’s Acies and Playstudios announced the merger agreement in February, the gaming company was valued at $1.1 billion<\/a>, or a tolerable 2.5x 2022 estimated revenue of $435 million. It came to market with $220 million in cash. Today, its market capitalization is just $580.55 million.<\/p>\n

Playstudios Far From Lone de-SPAC Offender<\/h2>\n

When blank-check companies, such as Acies, go public, it’s usually at a price of $10 per share. Typically, the share price jumps when the SPAC announces a deal, and from there, the stock becomes a proxy for the acquired company.<\/p>\n

Using $10 as the benchmark, Playstudios is one of the worst-performing de-SPACed stocks over the past year, having shed nearly 60 percent. The stock is down almost 70 percent from its February high, reached following the merger announcement.<\/p>\n

\n

However, Playstudios isn’t alone among post-SPAC offenders. A variety of gaming companies<\/a> that went public via blank-check transactions are slumping, and five other firms across multiple industries experienced worse de-SPAC share declines than Playstudios.<\/p>\n<\/div>\n

Market observers and blank-check experts say those declines are mostly attributable to poor underlying fundamentals and some de-SPACed companies being pre-revenue firms. Playstudios has revenue, though its second-quarter sales dipped $7.1 million year-over-year, while the company posted negative net income after being positive on that basis a year earlier.<\/p>\n

Data confirms post-SPAC performance is waning across the board.<\/p>\n

\u201cSince the IPOX SPAC Index peaked on Feb. 17, it has lost over 25 percent of its value, while the Russell 2000 Index is down around -2 percent,\u201d says Cameron McVie of Russell Investments<\/a>.<\/p>\n

Speculative Climate<\/h2>\n

Companies born out of blank-check transactions, regardless of industry, generated massive amounts of hype among retail investors, stoking fears of a bubble.<\/p>\n

\u201cWe also have experienced a period of plenty of speculative buying across the financial markets, such as retail investors investing in meme-mania<\/em> stocks via platforms such as Robinhood that have driven some wild stock price gyrations,\u201d adds McVie.<\/p>\n

“Notably, BofA Research identified that retail investors in the SPAC universe accounted for twice the trading volume, compared to the S&P 500 and Russell 2000 stocks, during the second half of 2020,” <\/strong>McVie continued.<\/p>\n

Specific to Playstudios, it operates in fast-growing segment analysts and investors are enthusiastic about. Additionally, its business model, including its loyalty program<\/a> \u2014 playAwards — and partnership with MGM Resorts is viable. Its clientele are also devoted, with 4.2 million monthly average users playing close to an hour per day.<\/p>\n","protected":false},"excerpt":{"rendered":"

Social casino developer Playstudios (NASDAQ:MYPS) became a publicly traded entity following a merger with a special purpose acquisition company (SPAC). It’s one of the worst-performing members of an expansive group that opted to go public that way. Playstudios became a freestanding public company in June after a merger with Acies Acquisition, a blank-check firm started […]<\/p>\n","protected":false},"author":46,"featured_media":183316,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,22988],"tags":[],"acf":[],"yoast_head":"\nPlaystudios One of Worst De-SPACed Stocks of Past Year<\/title>\n<meta name=\"description\" content=\"Playstudios is among a host of companies that have seen share prices slide following deals with SPACs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Playstudios One of Worst De-SPACed Stocks of Past Year\" \/>\n<meta property=\"og:description\" content=\"Playstudios is among a host of companies that have seen share prices slide following deals with SPACs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-19T16:35:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-08-19T20:38:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/08\/PS.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/\",\"url\":\"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/\",\"name\":\"Playstudios One of Worst De-SPACed Stocks of Past Year\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/08\/PS.jpg\",\"datePublished\":\"2021-08-19T16:35:23+00:00\",\"dateModified\":\"2021-08-19T20:38:05+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Playstudios is among a host of companies that have seen share prices slide following deals with SPACs.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/08\/PS.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/08\/PS.jpg\",\"width\":2000,\"height\":1200,\"caption\":\"Staffers at Playstudios Las Vegas headquarters. The stock has been pounded following its SPAC deal. (Image: The Nevada Independent)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Playstudios One of Worst-Performing De-SPACed Companies Over Past Year\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Playstudios One of Worst De-SPACed Stocks of Past Year","description":"Playstudios is among a host of companies that have seen share prices slide following deals with SPACs.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/","og_locale":"en_US","og_type":"article","og_title":"Playstudios One of Worst De-SPACed Stocks of Past Year","og_description":"Playstudios is among a host of companies that have seen share prices slide following deals with SPACs.","og_url":"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2021-08-19T16:35:23+00:00","article_modified_time":"2021-08-19T20:38:05+00:00","og_image":[{"width":2000,"height":1200,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/08\/PS.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/","url":"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/","name":"Playstudios One of Worst De-SPACed Stocks of Past Year","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/08\/PS.jpg","datePublished":"2021-08-19T16:35:23+00:00","dateModified":"2021-08-19T20:38:05+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Playstudios is among a host of companies that have seen share prices slide following deals with SPACs.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/08\/PS.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/08\/PS.jpg","width":2000,"height":1200,"caption":"Staffers at Playstudios Las Vegas headquarters. The stock has been pounded following its SPAC deal. (Image: The Nevada Independent)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/playstudios-one-of-worst-de-spaced-stocks-of-past-year\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Playstudios One of Worst-Performing De-SPACed Companies Over Past Year"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/183315"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=183315"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/183315\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/183316"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=183315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=183315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=183315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}