Motorsport Games is officially a penny stock. At 9:50am ET, the company’s stock was trading at less than $1 on the NASDAQ. The stock has sense rebounded back above $1 as of publishing, but it remains in flux.
The stock has fallen over 7% over the last five days. Looking back a bit further, it has fallen by nearly 20% since the company reported its 2024 fourth quarter earnings on March 21.
Reasons for the stocks falling are multiple. Not only is the United States market a volatile place right now, but Motorsport Games has seen its value drop over the last couple of years. The company has lost both its Indy Car and NASCAR licenses, and currently only develops one game: Le Mans Ultimate.
It’s worth mentioning that the game has sold more than 100,000 copies since it released in early access in February 2024. However, the company itself is still losing millions of dollars per quarter, reporting a fourth quarter loss of $2.9 million. This comes despite the company increasing its revenue for 2024 by 25.7% ($8.7 million) compared to 2023 ($6.9 million).
Motorsport Games also has, as of February 28, 2025, $1.2 million in cash and cash equivalents on hand. With the limited amount of funds, the company said in its recent earnings report that it didn’t believe it had “sufficient cash on hand to fund its operations over the next year”.
GPlayr understands that the company has continued to have multiple discussions regarding either a complete buyout or, at the very least, the selling of more assets. Those talks, however, have not resulted in any known finalized deal as of publishing.
What do you think of Motorsport Games’ stock continuing to fall? Let us know down below, and join the discussion in the official GPlayr forums.
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