Comment on Ubisofts stock tanked this morning ahead of the markets opening
scrubbles@poptalk.scrubbles.tech 1 day agoThe stock is tanking. 20% is a huge drop for any massive company. Do you know how much money disappeared overnight because of this? From my very rough calculations, Ubisoft just lost aobut 300 million dollars because of this drop. That’s more than any fine they’ve had.
The worst day in Stock Market history was Black Thursday, the beginning of the Great Recession. The market only dropped 11% that day. These are massive numbers, that I don’t think you fully appreciate or understand. The stock market usually deals in single digit or more likely fractional amounts of change. Double digit changes are a huge deal.
Ubisoft just lost about 300 million dollars because of this drop.
So they have 300 million dollars less to spend? They’re going to fire 300 million dollars worth of talent? Their bank account changed by 300 million dollars?
No, they did not lose 300 million dollars.
dustyData@lemmy.world 1 day ago
I do know, none. Not a single cent disappeared. Because stocks aren’t liquidity. That money was never there in the first place. Some paid some money to get those stocks, that money was real and it entered the company’s liquidity. Then they spent it on something. Those stocks are but the promise of paying some dividends, some time in the future or giving some power inside the company. Their virtual fluctuations of price over time are nothing but smoke and mirrors, people exchanging virtual titles over those rights like little kids trading collectible cards. Some people cashed out for a low price (that was already grossly overinflated from the pandemic days, so they probably still made bank) and it pushed an already correcting stock to accelerate for today. That money didn’t come from the company, it was exchanged entirely by third parties, public traders. Ubisoft didn’t participate at all in whatever pushed the price drop. No matter how much I want it to, Ubisoft is not in any more danger today than it was in yesterday. They are still filthy rich, if anything the biggest danger for this is that it gives them lee way to layoff another group of underpaid developers or gut another studio to appease the stockholders.
If you were to compare Ubisoft today to Ubisoft 2 years ago, you would see they dropped nearly 93%. Dear golly, how is this poor boutique family company in business after such a massive loss? /s