Nitro Games: Low Risk, High Potential Reward
Redeye has a favorable view on the news that Nitro Games is developing a game for Snap Inc with an expected soft-launch in 2021. Snapchat is a huge platform with over 250 million DAU's, and over 100 million users have played on its gaming platform. This deal offers a good risk-reward scenario for the company. Nitro Games is starting to build up a strong pipeline of games with different business opportunities.
Similar to the case of the Nerf Game we believe a potentially significant revenue boost will come at the earliest at the end of this year. We will make revisions upwards to our financial estimates and valuation in an upcoming update..