Ubisoft Entertainment Shares Plunge 4%, Erasing Recent Surge, at the Bottom of the SBF 120
The French video game publisher undergoes a significant correction mid-morning, contrary to a well-oriented CAC 40. The stock erases much of its recent surge and is relegated to the bottom of the broader index rankings, even as its latest commercial release posts solid figures.
A Notable Decline Bringing the Stock Back to its 20-Day Moving Average at €5.15
Ubisoft Entertainment's stock falls 3.89% to €5.29, among the steepest declines in the SBF 120. This movement brings the weekly loss to over 10%, while the annual performance remains very negative at -44.12%. The stock returns to its 20-day moving average (€5.15), which it had significantly exceeded at the beginning of last week. The RSI at 57 remains in the neutral zone, leaving some margin before any overselling signal.
The 200-day moving average at €5.93, about 10.8% above the current price, represents a medium-term hurdle that the stock had already encountered at the beginning of July. According to reviewed statements, eleven funds hold a net short position of 12.62% of the capital, a decrease of 0.79 points over thirty days. The level remains high and signals a structural distrust from institutional investors positioned against the stock, even though the slight decrease observed over a month indicates a partial buyback of these bearish bets. This factor continues to weigh on the stock's movements, without needing to overinterpret daily fluctuations.
The Success of Black Flag Resynced Struggles to Mask Last Fiscal Year’s Losses
Today's decline occurs as Ubisoft reported flattering commercial figures for Assassin's Creed Black Flag Resynced on July 17, with over 3 million copies sold in one week since its launch on July 9. This performance comes in a financially deteriorated context: the fiscal year 2025-2026 ended with a net loss of €1.5 billion and an operating loss of €1.3 billion, according to data published on July 17. The company also noted, among its points of vigilance, the intensification of competition in the video game industry.
The next concrete appointment for the stock: the publication of the first quarter 2026-2027 revenue, expected on July 22. This milestone will be an opportunity to assess whether the commercial momentum of the Assassin's Creed franchise translates into tangible revenues or if the structural challenges of the group continue to dominate the case analysis.
