Ubisoft Stock Plummets 18% to €3.93 Following Annual Losses
The French video game publisher is penalized in the stock market this Thursday, following the release of its annual accounts for 2025-2026. Falling below €4 mid-session, the stock marks one of the sharpest declines in the SBF 120, breaking through its technical support. This movement contrasts with a well-oriented Parisian market, with the CAC 40 up 0.34% and the SBF 120 up 0.38%.
An Operating Loss of €1.04 Billion Weighs Down the Session
Ubisoft's stock fell 17.94%, among the steepest drops in the SBF 120. The market's reaction follows the release of the 2025-2026 annual accounts, unveiled Wednesday evening. For the fiscal year ended, the group reported a non-IFRS operating loss of €1,044.7 million and a net bookings decrease of 17.4% to €1,525.1 million. Revenue declined by 21.8% over the period. The company presents these figures as a consequence of a refocused portfolio and a cost reduction policy ahead of more significant releases. Net debt has been reduced from €885 million to €187.3 million. Management also anticipates a stronger content pipeline for the fiscal years 2027-28 and 2028-29. However, this projection has not been enough to reassure investors.
Support at €3.95 Breached During the Session, Short Positions at 14.49% of Capital
The stock broke through its support at €3.95 during the morning, dropping to a low of €3.88, before slightly recovering above this level. The price is now 19.76% below its 20-day moving average (€5.00) and 37.41% below the 200-day moving average (€6.41), highlighting the extent of the technical breakdown. The RSI at 48 remains neutral, indicating that today's drop primarily reflects a news shock rather than a fundamental movement already in place. The selling context around the stock remains pronounced. According to reviewed statements, eleven funds together held 14.49% of the capital in net short positions prior to the release, up by 0.28 point over thirty days. This already high level indicates that several institutional investors were positioned against the stock approaching the accounts, or were looking to cover an exposure. Over the year, the stock has lost nearly 61%. The support at €3.95, now tested downward, becomes the pivotal level for the coming sessions.
