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Bidstack Soars 125% On AAA Games Publisher Deal

Trade Bidstack Shares Your Capital Is At Risk
Updated 13 Dec 2021
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The Bidstack Group PLC (LON: BIDS) share price soared 125% on the back of news with a deal with an “AAA Game Publisher” the company announced Friday. The Bidstack stock is off 10% this morning as the market waits for more news about who the game's publisher is.

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Bidstack runs a native, in-game, advertising platform. Running such a system requires several things. One, obviously, is the advertising to feed into such a network. That comes from the usual open marketplaces common to modern advertising platforms. The other, and perhaps more important, is the territory on which to place the ads. If you’re specialising in placing ads in-game then you’ve got to have an agreement with game publishers to have access to the real estate within the games. 

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Being able to place the advertisements in front of the players of the mobile games is, in this sense, a precondition of being able to sell the ads to be placed. This is what makes Bidstack’s news a big deal. Having the rights to place those native – that is, actually inside the game – ads is something that depends upon having that games publisher contract.

The announcement, which is here, explains that 125% jump in the Bidstack share price.

It’s what happens next which is important to a trading strategy. And here the Bidstack price is a bit more hesitant. There’s been a falling back of perhaps 10% so far this morning. For while the announcement of the contract with the AAA game publisher is interesting, even exciting, there’s not much detail to it. The publisher is not named so it’s not possible to really evaluate quite how big a deal this is.

This gives us two effects. The first is that uncertainty is something the markets really don’t like. OK, so there’s a deal. But what is it, who with, what are the real numbers and implications of the Bidstack deal? Being uncertain about these things is going to weigh upon that Bidstack share price. Claims about a company changing deals are not exactly unusual after all.

The second is that past the uncertainty there’s the detail of the deal itself. That involves the same question – who is the AAA game publisher, what are the volumes, and so on. But past the uncertainty, it’s also necessary to know those details in order to be able to evaluate.  

What this means is likely continuing volatility in the Bidstack share price. While there are those unknowns it will be opinions and beliefs about what the answers are which will likely drive the price. Once the name of the publisher is revealed then there could be a consideration of the actual, instead of claimed, importance of the deal and the stock then settle at a level to reflect that. 

The trading opportunity is to be correctly positioned for that news as and when it arrives and to move with sentiment about it before that. There is likely to be little stability in the Bidstack share price until the details are revealed.