ePlay Digital Inc (CNSX: EPY) is flying higher after touting a 56% user retention rate in its flagship Big Shot app. The stock’s sentiments have also received a boost on the company inking new advertising partnerships set to bring big brands to its mobile app.
Catalysts and Price Analysis
The company has since unveiled a new 3D augmented reality advertising solution that brands can use to target gamers. In the recent past, the company has collaborated a major sport, esports and gaming leader in China as part of a new Chinese distribution and marketing drive.
A flurry of positive developments in the recent past appears to have reinvigorated investor sentiments in the stock. Shares of ePlay Digital have since taken a flight after bottoming out from one-year lows. An uptick in upward momentum has once again aroused suggestions that the stock has hit a bottom and due for a correction higher.
ePlay Digital is already up by more than 60% for the year as it continues to register higher highs after succumbing to bearish pressure last year. A rally-followed bay close above the $0.12 mark has since opened the door for the stock to make a run for the $0.18 mark, seen as the next resistance level.
The stock rallying and finding support above the $0.18 mark should bring to an end a bearish run that had raised serious concerns about the stock’s long-term prospects.
Above the $0.10 mark, ePlay Digital remains well supported for further upside action. Conversely, a breach of the $0.10 support level could result in the stock plunging back to 52-week lows.
What Does ePlay Digital Do?
ePlay Digital develops and operates broadcast and live video technologies in Canada. It also bills itself as a mobile game creator in specializing in sports, esports and entertainment-augmented reality titles. The Company also offers a level-interactive video and content marketing platform.
Big Shot Growing Traction
ePlay Digital market sentiments have improved, consequently triggering upside action in the stock’s price action. The spike follows the confirmation that the company’s basketball beta augmented reality mobile game, Big Shot, has reached a retention rate threshold of 56%.
Buoyed by the high retention rate, the mobile game creator is planning for commercial launch as it seeks to generate significant value from the game. The flagship mobile game is currently available on Apple App store having received positive feedback from users, NBA players as well as broadcaster’s advertisers and sponsors.
“User and stakeholder feedback throughout our development process has helped create the forever sports game that blends real-world game points, teams, sports stars, and scores in a digital and physical world through augmented reality. We think it’s the first forever sports game that people will play for the rest of their lives,” says Trevor Doerksen, CEO of ePlay Digital.
Big Shot is among a list of 10 sports, esports and entertainment titles in ePlay Digital vast intellectual property portfolio. Developed for commercial applications, the portfolio includes games available in six languages and 18 countries.
As part of its growth strategy, ePlay digital has unveiled a new 3D augmented reality advertising solution that brands can use to target gamers. Brands can use the multi-platform advertising solution to target audiences in over 25 platforms including Android, XBOX PlayStation, and iOS.
Brands can also publish effective ads for measuring and driving retail foothill as well as online click-through. The launch of the 3D AR advertising affirms ePlay Digital push for opportunities in the AR industry.
ePlay has also moved to expand its footprint into China’s burgeoning gaming industry. The company has inked a Chinese distribution and marketing partnership with Next Joy. The two have joined forces to create a platform for mobile gaming and esports, with the first results of the collaboration set for launches in North America and China.
“Working with Next Joy gives ePlay access to the Chinese gaming market. Next Joy is a great partner to help ePlay introduce and grow massive audiences for our products and joint initiatives,” explained Mr. Doerksen.
ePlay Digital is likely to continue trending higher as investors react to a flurry of developments that underscore underlying growth. The unveiling of an AR advertising platform should allow the company to strengthen and diversify its revenue streams.
Expansion into China is another development that exposes the company to tremendous growth. The company’s flagship mobile game Big shot gaining traction with users also paves the way for the company to generate significant value as it embarks on a commercialization drive.
ePlay Digital is an ideal play due to improving fundamentals and long-term prospects.
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Disclosure: We have no position in CNSX: EPY and have not been compensated for this article.