Ubisoft Stock Recovers Mid-Day After Last Week's Shock
On Wednesday, January 28, mid-day, Ubisoft Entertainment's stock shows a rebound of 2.64%, at 4.39 euros, after experiencing the sharpest drop in its history on January 22 with a nearly 40% plunge in a single session. Since the announcement of a major restructuring on January 21, the French publisher has struggled to reassure investors, with the stock losing over 30% in seven days. This modest recovery occurs in a context of high volatility, as the company just announced the cancellation of six games and drastic financial revisions.
Major Organizational Overhaul Announced
On January 21, Ubisoft unveiled a major overhaul of its organization around five Creative Houses specialized by game genre, with implementation planned for April 2026.
Record Drop in Stock Value
The stock closed down almost 40% in a single session on January 22, significantly surpassing its previous negative record from October 2013 when the stock had fallen by 31.92%, thus recording the largest daily drop in its history. Following this debacle, analysts' recommendations have significantly deteriorated. Alphavalue lowered its price target from 9.35 to 4.10 euros on January 23 and downgraded its recommendation from buy to sell, while Kepler Cheuvreux reduced its target from 7 to 5 euros with a recommendation to reduce on January 22. At the current price of 4.39 euros, the stock shows a downside potential of 6.6% according to Alphavalue's target and a limited upside potential of 13.9% according to Kepler Cheuvreux. Technically, the RSI is at 17, indicating an extreme oversold zone that could favor a tactical rebound in the short term. The stock is trading well below its moving averages, with a MM50 at 6.17 euros and a MM200 at 8.48 euros, indicating a deeply entrenched bearish trend. The support threshold at 3.99 euros, tested on January 22 during the historic drop, remains a critical area to watch, while the resistance at 6.12 euros now seems hardly attainable in the immediate future. While it was around 85 euros in January 2021, Ubisoft's stock is now worth only about 4.5 euros, representing a nearly 95% drop over five years.
