Video game developer, publisher, and distributor CD Projekt (OTGLY) is seeing shares fall 2.58% today despite revealing a trailer for The Witcher 4 at The Game Awards last night. This trailer shows off Ciri, the new protagonist of the series and a central character in the plot of Witcher 3. While fans strongly associate the Witcher title with Geralt, the protagonist of the books, Netflix (NFLX) series, and first three games, developer CD Projekt Red is switching focus away from the aging monster hunter.
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Some might argue this decision is part of the reason OTGLY is falling today, but fans have long suspected Ciri would be the protagonist of The Witcher 4. CD Projekt Red has also promised to keep the lore and canon of the previous games intact even as this entry launches a new trilogy for the series. One concern investors may have is the lack of gameplay footage in the trailer.
What This Means for OTGLY Stock
The Witcher series has been a major money maker for CD Projekt. While the first two entries performed well enough to warrant sequels, its biggest success came from The Witcher 3. This entry has sold over 50 million units since its release in 2015, making up two-thirds of the series’ roughly 75 million sales.
If CD Projekt can catch lightning in a bottle once more, then sales for Witcher 4 will be astronomical. A bullish argument for this is the advantage of media synergy. Netflix is preparing a fourth season of its Witcher series and has already approved a fifth, and final, season. Additionally, book series author Andrzej Sapkowski released a new novel in November, the first since 2013.
Is OTGLY Stock a Buy, Sell, or Hold?
There’s not enough analyst data for a consensus on CD Projekt. Looking at its financials, the company reported EPS of 78 cents and revenue of $207.48 million złoty in its latest quarter. Both of these beat estimates, but were down significantly year-over-year. Even so, OTGLY stock is up 54.74% year-to-date.
