Insights

PlaySide share price jumps 11% after scoring Meta extension

The developer will be diving deeper into the metaverse for another 16 months.
The post PlaySide share price jumps 11% after scoring Meta extension appeared first on The Motley Fool Australia. –

The PlaySide Studios Ltd (ASX: PLY) share price is in the spotlight this morning amid its latest announcement.

Shares in the Australian game developer are sparkling a little brighter today, leaping 11.11% shortly after open on Monday.

They have since retreated — at the time of writing, PlaySide Studios shares are up 6.94% at 77 cents. Shareholders are receiving the much-needed boost following the company’s work-for-hire extension with social media and virtual reality juggernaut Meta Platforms Inc (NASDAQ: META).

What does it mean for the ASX-listed company?

More work with Meta is on the horizon

Investors are doing a double-take of PlaySide Studios today as it deepens its relationship with a US$500 billion tech giant.

An extended work-for-hire development agreement will see the Aussie game developer get another 16 months with the company formerly known as Facebook. The agreement likely quells any concerns that PlaySide had seen the last of Meta after signing a six-month extension more than eight months ago.

The previous work involved conceptualisation, creation, and development of prototype works for Meta’s Horizon Worlds. For those wondering, Horizon Worlds is a virtual world that is readily accessible using Meta’s Quest VR headsets.

PlaySide CEO Gerry Sakkas commented on the announcement:

Significantly extending and expanding our agreement with Meta further builds on our relationship with this global brand and leader in innovation and validates PlaySide’s ability to meet and exceed Meta’s expectations as well as generating significant additional opportunities and revenue for PlaySide.

In addition to the 16-month extension, PlaySide has also landed a separate six-month contract with Meta. According to the announcement, this agreement will see the Aussie developer work on a new VR initiative for Meta. The project has a fast turnaround, set for delivery in October 2022.

PlaySide Studios share price recap

It has been a difficult year so far for PlaySide shareholders. The small-cap company’s share price has been steadily chipped away, now 40% lower. However, we can see a more positive picture when zoomed out. One that shows the PlaySide Studios share price up an impressive 167% in the past year.

Although, the market might be looking over PlaySide with a sceptical lens due to the composition of its third-quarter revenue. While the company achieved a record quarterly revenue of $13.76 million (up 403%), around half of that stemmed from a one-off sale of non-fungible tokens (NFTs).

The post PlaySide share price jumps 11% after scoring Meta extension appeared first on The Motley Fool Australia.

Should you invest $1,000 in PlaySide Studios right now?

Before you consider PlaySide Studios, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and PlaySide Studios wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Revenue up 400%: expert sticks by ASX share that’s halved this year

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler has positions in Meta Platforms, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Free Share Allocation Reward Levels

STARTER

Class
$ 2,500 Deposit & Trade
  • REWARD^
  • 1 x Marathon Oil Corporation (NYSE:MRO)

ECONOMY

Basic
$ 5,000 Deposit & Trade
  • REWARD^
  • 1 x Pfizer Inc (NASDAQ:PFE)

ECONOMY

Standard
$ 10,000 Deposit & Trade
  • REWARD^
  • 1 x Amazon.com Inc (NASDAQ:AMZN)

ECONOMY

Plus
$ 25,000 Deposit & Trade
  • REWARD^
  • 2 x Apple Inc (NASDAQ:AAPL)
POPULAR

BUSINESS

Class
$ 50,000 Deposit & Trade
  • REWARD^
  • 4 x Apple Inc (NASDAQ:AAPL)

FIRST

Class
$ 150,000 Deposit & Trade
  • REWARD CHOICES^
  • 12 x Apple Inc (NASDAQ:AAPL)
  • 2 x Tesla (NASDAQ:TSLA)
^Please refer to the Free Share Promotion Terms and Conditions for details.

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info