Despite CD Projekt has yet to return to its 2020 peaksthis year its stock has increased dramaticallyInvestors are generally optimistic about the Polish company, but still have concerns about its ambitions, which they consider excessive.
CD Projekt’s actions are increased by more than 63% since the beginning of 2024. They are currently trading at PLN 182.85 (about 48 euros) per share. This is the highest price since April 2021, but is still well below the all-time high of PLN 446 (about 116 euros) recorded in August 2020.
Lots of big projects
According to Bloomberg, the Witcher studio’s stock has been the best performer among all companies in the WIG20 index this year. Most analysts failed to predict such a performance, with only 3 out of 12 recommending buying the stock on January 1, 2024. However, some market experts believe that CD Projekt’s stock will drop by 30% in the next 12 months. The reason? Excessive ambitions, i.e. the huge amount of projects underway that increases the margins of error and makes feasible estimates extremely volatile.
CD Projekt currently has four projects in various stages of development:
- Project Polaris, the new game in The Witcher series, in development with Unreal Engine 5. It currently has a team of 407 people.
- Project Orion, which is a new game based on the Cyberpunk 2077 IP. Currently has a team of over 50 people.
- Project Sirius, a spin-off of The Witcher series, developed by CD Projekt subsidiary The Molassess Flood.
- Project Hadar, a new IP that is still in the conceptualization stage. There are currently about 20 people working on it.
There is also a remake of the first The Witcher, developed by Fool’s Theory, a studio made up of veterans of CD Projekt Red.
In short, analysts fear that all these large projects threaten the company’s finances, also considering that they consider Project Polaris, the most certain from the point of view of returns, arriving in 2026, to be optimistic.
In the meantime, the company can only rely on its catalog titles, such as The Witcher 3: Wild Hunt, which is now more than a decade old, and Cyberpunk 2077.
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