Ubisoft Entertain Shares Drop 2%, Short Sellers Hold 12.78% of Capital
The French video game publisher is losing ground in early afternoon trading, going against a stagnant CAC 40. The stock is erasing part of its summer rally, as short positions remain heavily present in the capital despite a recent decrease.
A Retreat that Interrupts the Upward Momentum Despite Solid Quarterly Performance
Ubisoft Entertain shares are down 2.04% at €5.75 during the session, after closing at €5.87 the previous day. This decline occurs while the stock still shows nearly 46% growth over three months and +16% over one month, but remains down nearly 39% on the year. Today's movement interrupts a favorable sequence that had seen the stock break through its €5.60 resistance at the beginning of July, as documented on July 6. However, the price remains above its MM20 (€5.15) and MM50 (€5.06), with respective differences of 11.7% and 13.7%, which preserves the medium-term structure. The MM200 at €5.93 remains a technical ceiling: the stock is trading 3% below this level and has been struggling with this threshold for several sessions, already identified as an obstacle on July 8. The RSI at 57 indicates a neutral dynamic, without directional excess. On the fundamentals side, the annual results for 2025/2026 published on May 20, 2026, showed a revenue decline of 21.8% and a negative net IFRS result, while highlighting a reduction in net debt to €187.3m from €885m previously. The group had then indicated it anticipated a stronger and more diversified content pipeline for the 2027-28 and 2028-29 fiscal years.
Persistent Massive Short Selling Pressure Despite a Decline Over Thirty Days
According to reviewed statements, eleven funds cumulate a net short position of 12.78% of the capital, down 0.85 points over the last thirty days (13.63% a month ago). This level, significantly higher than the standards observed on the SBF 120, signals a still deeply entrenched bearish conviction among several institutional managers, who were betting on an unfavorable scenario or covering a sectoral exposure. However, the decrease remains slow: it reflects a gradual unwinding rather than a capitulation, leaving the stock exposed to amplified movements in both directions. On the franchise animation front, Ubisoft re-released a Resynced version of Assassin's Creed Black Flag on July 9, and is engaging Rainbow Six Siege and Trackmania in the Esports World Cup 2026 organized in Paris, with $2.5 million in combined stakes for the two disciplines. These initiatives are part of the strategy to enhance the value of historical franchises highlighted during the annual publication. In the short term, the stock pivots around its MM200 at €5.93, a threshold whose crossing would condition the continuation of the recovery initiated since spring.
