Join our community of smart investors

Keywords Studios' weakness offers buying opportunity

The games development service business is still taking market share despite industry downturn
March 13, 2024
  • Operating margin protected by efficiency improvements
  • Hollywood strikes dragged on revenue growth

Keywords Studios’ (KWS) share price is being weighed down by concerns that artificial intelligence (AI) will threaten its business.

The company provides outsourcing services to video games developers and film studios; it helps with everything from translation services, to graphics and marketing. The strength is its large workforce and geographic scope, but since the launch of ChatGPT at the end of 2022 the share price has fallen 50 per cent.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in