Earnings GrowthDespite strong intellectual property, earnings growth remains muted, affecting the analyst's recommendation.
Guidance And Cost PressuresGuidance on Q3 has sounded softer, with the company highlighting the staff bonus payments, and increased marketing costs for Arc Raiders.
Valuation ConcernsThe stock has surged approximately 86% from its 52-week low, now near all-time highs, leading to a downgrade to HOLD as valuation appears stretched.