{"id":233770,"date":"2022-09-25T15:54:01","date_gmt":"2022-09-25T20:54:01","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=233770"},"modified":"2022-09-26T14:30:46","modified_gmt":"2022-09-26T19:30:46","slug":"bofa-says-social-casino-stocks-could-be-vulnerable-in-recession","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/bofa-says-social-casino-stocks-could-be-vulnerable-in-recession\/","title":{"rendered":"Playstudios, SciPlay Vulnerable in Recession, Says Bank of America"},"content":{"rendered":"

A recession is likely to adversely affect video game sales. History proves as much and that precedent pertains to social casino companies and their stocks.<\/p>\n

\"social
A screenshot of a scene from a Playstudios game, seen above. Bank of America is bearish on social casino stocks. (Image: OfftheStrip.com<\/em>)<\/figcaption><\/figure>\n

Potentially, that\u2019s bad news for the likes of Playstudios (NASDAQ:MYPS), Playtika (NASDAQ:PLTK) and SciPlay (NASDAQ:SCPL). In a recent report, Bank of America economists push out recession expectations to the first quarter of 2023 from the fourth quarter of this year. But they forecast a 4% to 6% decline in video game sales during that economic malaise.<\/p>\n

We expect some players in the industry to outperform others, as certain product categories, franchises, and monetization strategies may weather through the economic storm better,\u201d<\/strong> wrote analyst Omar Dessouky.<\/p><\/blockquote>\n

The bank says the retreat in game sales, assuming a traditional recession sets in, will be much milder than during the global financial crisis.<\/p>\n

Problems Lurking for Social Casino Stocks<\/h2>\n

While Bank of America is constructive on some video game equities and neutral on others, it\u2019s not enthusiastic on social casino stocks.<\/p>\n

\n

The bank has \u201cunderperform ratings on Playstudios, Playtika,<\/a> and SciPlay, noting those companies face \u201csubstitution risk\u201d as consumers look for ways to trim spending in an economic contraction. That\u2019s a sensible thesis, because while many of the games published by the aforementioned trio of companies are free to download and initially play, the companies rely on in-app purchases as significant parts of their revenue streams.<\/p>\n<\/div>\n

SciPlay\u2019s well-known offerings<\/a> are Jackpot Party, Quick Hit Slots, Gold Fish Casino Slots, Hot Shot Casino, 88 Fortunes, Bingo Showdown, <\/em>and Monopoly Slots.<\/em> The games are free to play but feature in-app purchases.<\/p>\n

Formerly a unit of Caesars Entertainment, Playtika was one of the first to offer free-to-play social games on social networks and mobile devices and has more than 35 million monthly users. Its well-known games include Bingo Blitz, Caesars Slots, Slotomania<\/em>, and World Series of Poker (WSOP) Social<\/em>.<\/p>\n

Rough 2022 for Social Casino Stocks<\/h2>\n

There\u2019s been broad-based pressure on gaming equities this year, and social casino stocks aren\u2019t immune to that theme. Of the aforementioned trio, the best performer on a year-to-date basis is Playstudios, and that name is down nearly 10%.<\/p>\n

Playstudios operates in fast-growing segment analysts and investors are enthusiastic about. Additionally, its business model, including its loyalty program<\/a> \u2014 playAwards \u2014 and partnership with MGM Resorts, is viable.<\/p>\n

The owner of the Tetris<\/em> mobile app recently launched a $10 million venture fund aimed at investing in companies publishing rewarded play games,<\/strong><\/p>\n

Through \u201cFuture Fund,\u201d Playstudios \u201cwill partner with next generation Web3 companies building advanced capabilities at the intersection of gaming, loyalty marketing, and blockchain rewards. The fund\u2019s initial strategic investments in Forte and The Kryptomon Company provide PLAYSTUDIOS with access to expertise in Web3 technology, marketing, and community building that it can leverage as it deepens its capabilities in the space,\u201d according to a statement issued by the company.<\/p>\n","protected":false},"excerpt":{"rendered":"

A recession is likely to adversely affect video game sales. History proves as much and that precedent pertains to social casino companies and their stocks. Potentially, that\u2019s bad news for the likes of Playstudios (NASDAQ:MYPS), Playtika (NASDAQ:PLTK) and SciPlay (NASDAQ:SCPL). In a recent report, Bank of America economists push out recession expectations to the first […]<\/p>\n","protected":false},"author":46,"featured_media":233771,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,20],"tags":[81903,81906],"acf":[],"yoast_head":"\nBofA Says social casino stocks Could Be Vulnerable In Recession<\/title>\n<meta name=\"description\" content=\"Bank of America says social casino stocks could be pinched by a recession.\" \/>\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\/bofa-says-social-casino-stocks-could-be-vulnerable-in-recession\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BofA Says social casino stocks Could Be Vulnerable In Recession\" \/>\n<meta property=\"og:description\" content=\"Bank of America says social casino stocks could be pinched by a recession.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/bofa-says-social-casino-stocks-could-be-vulnerable-in-recession\/\" \/>\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=\"2022-09-25T20:54:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-09-26T19:30:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/09\/Play.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1292\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\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\/bofa-says-social-casino-stocks-could-be-vulnerable-in-recession\/\",\"url\":\"https:\/\/www.casino.org\/news\/bofa-says-social-casino-stocks-could-be-vulnerable-in-recession\/\",\"name\":\"BofA Says social casino stocks Could Be Vulnerable In Recession\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/bofa-says-social-casino-stocks-could-be-vulnerable-in-recession\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/bofa-says-social-casino-stocks-could-be-vulnerable-in-recession\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/09\/Play.jpg\",\"datePublished\":\"2022-09-25T20:54:01+00:00\",\"dateModified\":\"2022-09-26T19:30:46+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Bank of America says social casino stocks could be pinched by a recession.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/bofa-says-social-casino-stocks-could-be-vulnerable-in-recession\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/bofa-says-social-casino-stocks-could-be-vulnerable-in-recession\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/bofa-says-social-casino-stocks-could-be-vulnerable-in-recession\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/09\/Play.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/09\/Play.jpg\",\"width\":1292,\"height\":675,\"caption\":\"A scene from a Playstudios game. 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