Europe Markets: Ubisoft on track for worst close in more than four years on ‘Far Cry 6’ worries
Ubisoft Entertainment shares slumped Thursday on worries over sales of the latest Far Cry video game.
shares slumped 5%, to a level that would be the worst close in more than four years, as JPMorgan analysts cut their fiscal year operating profit forecast by 13% — to the bottom of Ubisoft’s forecast range — on concerns over Far Cry 6 sales. They said their analysis, which blends Twitch and social media data, finds that the release could be a “category B” game in term of sales success, which means it won’t be one of the top 20 games of the year.
Far Cry 6 was released on Oct. 7, and its predecessor was a top three selling game of 2018. The JPMorgan analysts, who have an overweight rating, added that while the game has received favorable scores from critics, user reviews have not been as strong.
The broader European stock market had a solid gain Thursday, led by mining and technology shares as bond yields fell.
The Stoxx Europe 600
rose 0.9% to 464.60.
Of the major regional indexes, the German DAX
gained 0.9%, the French CAC 40
increased 1.% and the U.K. FTSE 100