2024-06-20 11:03:20 ET
Summary
- Playtika continues to see declining revenues, despite its recent acquisitions.
- Despite a significant increase in marketing spend this year, management’s guidance points to growth remaining flat versus the prior year.
- Shares trade at a cheap valuation, and management has begun returning capital to shareholders through dividends and buybacks.
- The weakening of its balance sheet due to future acquisitions as well as lower margins due to higher marketing spend are the risks I see with this investment.
Investment thesis
Read the full article on Seeking Alpha
For further details see:
Playtika: Cheap Valuation But Capital Allocation Will Be Key