Ubisoft (UBSFY) stock was up on Wednesday despite a lawsuit from French consumer group UFC-Que Choisir. The French consumer group has teamed up with Stop Killing Games, a consumer rights movement focused on preventing the destruction of games already sold to consumers.
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The groups have taken issue with Ubisoft’s 2024 shuttering of The Crew, an online-only racing game. Ubisoft shut down the servers and didn’t release public service tools, making the game unplayable. Additionally, it revoked licenses to the game on its Ubisoft Connect digital platform.
The lawsuit claims that Ubisoft infringed on consumer rights when it shut down The Crew. It also calls into question the legality of selling consumers licenses to access a game that can later be revoked. Other issues in the lawsuit include a lack of communication ahead of The Crew’s shutdown and no refunds being offered to consumers.
Ubisoft Stock Movement Today
Despite today’s lawsuit news, Ubisoft stock has rallied. The shares were up 3.21% on Wednesday but were still down 43.3% year-to-date. The stock has also fallen 63.85% over the past 12 months.
UBSFY stock also experienced heavy trading on Wednesday. As of this writing, more than 21,000 shares have changed hands. For comparison, the company’s three-month average daily trading volume is about 11,400 shares.
Is Ubisoft Stock a Buy, Sell, or Hold?
Turning to Wall Street, traditional analyst coverage of Ubisoft is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates UBSFY stock as Neutral with a $1 price target. It cites “weak financial performance (revenue decline, losses, and strained cash flow) and a bearish technical trend (price below all key moving averages with negative MACD)” as reasons for this stance.
