Cash at King Digital rose more than four-fold to $832 million, allowing the company to pay a special dividend of $150 million. Some bargain-hunting investors on Wall Street think King Digital will be able to move beyond Candy Crush and turn itself around. However, trends are presently worsening.
Analysts, who have pumped King Digital since its IPO, are also just beginning to cut their estimates. TheStreet was decidedly skeptical of the sell-side’s bullishness on King Digital when analysts began initiating coverage in May.
Bottom Line: At a market capitalization of about $4.5 billion, King Digital remains a risky bet in spite of its significant profits, cash generation and dividend payments.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts