PLAYSTUDIOS (MYPS) AI Stock Analysis

• Market Cap: $147.30M
• Dividend Yield: N/A
• Average Volume (3M): 284.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -11.11%
• EPS Growth: -90.96%
• Country: US
• Employees: 556
• Sector: Communication Services
• Sector Strength: 83
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.02
• Shares Outstanding: 109,438,354
• 10 Day Avg. Volume: 261,601
• 30 Day Avg. Volume: 284,799
• PEG Ratio: 1.14
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.34
• Enterprise Value/Market Cap: 0.39
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.28
• Enterprise Value/Ebitda: 0.37
• 1Y Price Target: $2.50
• Price Target Upside: 113.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• Price Target: $1.00 ▼(-14.53%Downside)

PLAYSTUDIOS faces significant challenges with declining revenue, profitability issues, and bearish technical indicators. Despite a strong balance sheet and some strategic initiatives, the negative valuation metrics and earnings call concerns weigh heavily on the stock's overall score. Improving operational efficiency and stabilizing core business performance are critical for enhancing its outlook.

Positive Factors

Financial Health

The company is actively buying back stock and maintains a strong balance sheet with $107M in cash, no debt, and $20M in free cash flow generated.

Monetization Strategy

PLAYSTUDIOS continues to benefit from early traction in direct-to-consumer monetization and disciplined cost execution through its Reinvention plan.

Revenue Growth

Direct-to-consumer revenue surged 93% YoY to $4.7M, continuing the company’s strategic shift towards higher-margin revenue streams.

Negative Factors

Cost Efficiency Issues

Revenue met expectations, but AEBITDA fell short in Q4, reflecting weaker-than-expected cost efficiencies.

Market Transition Challenges

Management commentary suggests a cautious outlook as the company navigates a softening social casino market and transitions into new growth verticals such as sweepstakes and the Tetris game launch.

Profitability Concerns

FY 2025 guidance was below consensus, particularly on profitability, raising concerns about near-term margin expansion and cash generation.

PLAYSTUDIOS Business Overview & Revenue Model

Company Description

PLAYSTUDIOS (MYPS) is a company operating in the digital entertainment sector, focused on developing and publishing free-to-play casual games. The company's core products are its mobile and social games, which blend engaging gameplay with real-world rewards. PLAYSTUDIOS offers a unique gaming experience by incorporating a loyalty platform that allows players to earn loyalty points redeemable for various rewards from partner brands.

How the Company Makes Money

PLAYSTUDIOS generates revenue primarily through in-app purchases and advertising within its games. Players can purchase virtual currency, which is used to enhance gameplay or accelerate progress within the games. Additionally, the company's loyalty platform serves as a significant revenue stream, as it partners with various businesses to offer rewards. These partnerships not only enhance the value proposition for players but also create promotional opportunities for partner brands, potentially leading to shared revenue models or marketing fees. The company's focus on creating engaging games with real-world rewards has established a distinctive niche in the gaming market.

PLAYSTUDIOS Financial Statement Overview

Summary

PLAYSTUDIOS is experiencing a revenue decline and profitability challenges, as seen in negative net profit margins and EBIT. However, the balance sheet remains strong with low debt and high equity. Cash flow issues, particularly the reduction in free cash flow, pose concerns. The company should focus on improving operational efficiency and stabilizing revenue to enhance its financial performance.

Income Statement

The company's revenue has been declining over recent periods, with a TTM revenue of $274.31 million compared to $289.43 million in the previous year. Both gross profit margin and net profit margin have been negative, indicating challenges in converting revenue into profit. Despite a positive EBITDA margin, persistent negative EBIT suggests ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows a healthy equity position with an equity ratio of 77.8%. The company has maintained low levels of debt, resulting in a low debt-to-equity ratio. However, declining total assets and equity year-over-year highlight potential concerns about asset management or investment strategy.

Cash Flow

Operating cash flow remains positive, indicating the company's core operations are generating cash. However, free cash flow has decreased from $41.76 million to $24.41 million in the TTM, suggesting increased capital expenditure or reduced cash generation from operations. The free cash flow to net income ratio is positive, but net income itself is negative, which may obscure the true cash flow health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	289.43M	310.89M	290.31M	287.42M	269.88M
Gross Profit	216.71M	233.09M	204.91M	195.78M	178.41M
EBITDA	38.29M	43.36M	20.50M	27.49M	33.47M
Net Income	-28.69M	-19.39M	-17.78M	10.74M	12.81M
Balance Sheet
Total Assets	322.95M	366.32M	352.01M	334.84M	134.46M
Cash, Cash Equivalents and Short-Term Investments	109.18M	132.89M	134.00M	213.50M	48.93M
Total Debt	10.06M	9.94M	16.23M	0.00	0.00
Total Liabilities	78.24M	77.97M	49.70M	31.38M	38.38M
Stockholders Equity	244.72M	288.35M	302.31M	303.47M	96.08M
Cash Flow
Free Cash Flow	41.76M	19.25M	4.00K	-7.02M	21.40M
Operating Cash Flow	45.74M	51.72M	33.38M	33.88M	48.40M
Investing Cash Flow	-26.29M	-32.31M	-102.35M	-56.94M	-27.00M
Financing Cash Flow	-41.91M	-20.18M	-9.57M	186.89M	-3.63M

PLAYSTUDIOS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MYPS, the sentiment is Negative. The current price of 1.17 is below the 20-day moving average (MA) of 1.28, below the 50-day MA of 1.39, and below the 200-day MA of 1.55, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 34.32 is Neutral, neither overbought nor oversold. The STOCH value of 15.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MYPS.

PLAYSTUDIOS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THRY	59 Neutral	$515.67M	―	-51.21%	―	-14.71%	66.24%
Sector *	59 Neutral	kr14.30B	5.50	19.17%	4.44%	-8.53%	7.48%
ZH	58 Neutral	$430.11M	―	-0.39%	―	-19.68%	99.02%
SKLZ	57 Neutral	$123.98M	―	-21.26%	―	-29.26%	57.78%
KIND	54 Neutral	$719.27M	―	-18.77%	―	12.01%	35.71%
SEAT	52 Neutral	$336.68M	25.25	-1.00%	―	0.82%	-102.72%
MYPS	51 Neutral	$147.30M	―	-11.64%	―	-11.11%	-90.96%

PLAYSTUDIOS Corporate Events

James Murren Resigns from PLAYSTUDIOS Board

On March 7, 2025, James Murren resigned from the Board of Directors of PLAYSTUDIOS, Inc., where he served as Chairman of the Audit Committee. The company also adopted a Severance and Change in Control Plan to provide benefits to eligible officers and management employees in case of qualifying terminations. Additionally, the Compensation Committee approved grants of restricted and performance stock units to key executives. PLAYSTUDIOS reported a decrease in revenue and net loss for the fourth quarter of 2024 compared to the previous year, but highlighted its strategic focus on growth initiatives, including new business ventures in sweepstakes and a Tetris title. The company aims to leverage these efforts to enhance its casino portfolio and maximize shareholder value through strategic capital allocation.