Sometimes, some young industries in the market achieve great results and popularity much faster and easier than well-established leading sectors. For instance, the video game industry is the most illustrious example of such a phenomenon. In the shortest period, it has become one of the most lucrative branches of the IT sector. Today, we will talk about one of the most successful companies in this rapidly developing sector. It is the largest European developer of computer games - CD Projekt. Currently, the total capitalization of this corporation is estimated at tens of billions of dollars. Gamers from all over the world are looking forward to the release of new products.

The time is ripe to reveal the secrets of CD PROJEKT's success, as well as to get acquainted with the history of the ups and downs of its stock on the stock market.

CD PROJEKT's history


CD Projekt holding is mainly engaged in the development and release of computer games for the popular Xbox, PC, and PlayStation platforms. The most famous product of the corporation today is The Witcher, a series of fantasy action role-playing games. It is based on the book series of the same name by Polish writer Andrzej Sapkowski.

The founders of CD Projekt are Polish entrepreneurs Martin Iwinski and Michal Kiczynski, both pioneers in video game distribution in Poland. As a result, CD Projekt was made out of a raw passion for video games. In 1994, they officially registered the CD Projekt company. The number of full-time employees barely exceeded 10 people. Later, in February 2002, during the creation of the Witcher, the number of staff members rose to 70. Nowadays, the corporation’s personnel totals more than 1,100 people.

Interestingly enough, CD Projekt developers created the first demo version of the game based on the book of Andrzej Sapkowski only in a few months. However, it was unsuccessful. The company managed to release a more or less popular version of The Witcher only five years later in 2007. It was the finest hour of the company. The game received a lot of positive feedback from experts and gamers. At the same time, the company's revenue was mainly boosted by the sequels* of The Witcher. They reshaped the company: from a small company into one of the leading producers of computer games in Europe.

CD Projekt is headquartered in Warsaw, the capital of Poland. Despite the fact that Poland is not considered the most high-tech state in the world, CD Projekt is a serious competitor to the world's leading manufacturers of computer games.

The company's products have been awarded many popular awards, including the "Game of the Year". In November 2015, CD Projekt won first place in the nomination "Best Developer Studio" at the annual Global Game Awards ceremony.

*Sequel is a book, movie, or game that continues the story created amid the success of the original product.

CD Projekt is a record holder when it comes to the shares’ growth. For ten years of trading on the stock market, the company's shares have soared by 21,000%. None of the well-known European corporations has been able to break this record so far.

CD Projekt shares

Nowadays, CD Projekt’s shares are traded on several leading world stock exchanges under the ticker* CDR. The first IPO took place on the Warsaw Stock Exchange in 2011. At that time, the nominal value of the stock was equal to 1 Polish zloty. After the release of new popular computer games, the share price significantly increased.

So, in the summer of 2018, the share price reached a record level of $40. In May 2020, it was already twice as high. In August of the same year, it exceeded $85. However, in December 2020, CD Projekt shares fell to $60 due to multiple bugs identified by gamers in the new product – Cyberpunk 2077. Then speculators began to urgently dump the shares at an attractive price and its liquidity significantly sank.

The main shareholders of the company at the moment were its founders - Martin Ivinsky and Michal Kicinski. After the placement of the shares on the stock exchange, more than 66% of the stock was available for investors.

If an individual investor wants to buy CD Projekt shares, it is necessary to open a trading account with a broker that provides access to major stock markets of the world. It will not take much time. For example, traders spend less than 3 minutes to register an account with InstaForex.

The minimum lot size is 1, which equals 1 share. To calculate the income, use the Forex calculator on InstaForex website.

InstaForex offers the most favorable and comfortable conditions for traders. When opening an account, do not hesitate to open short or long positions on CD Projekt’s shares or any other popular companies. The InstaForex MT4 platform, an absolute favorite of many speculators, will be an ideal tool for you when trading stocks.

To come up with a profitable trading strategy, a novice investor needs to undergo minimum online training and understand the basic methods of market analysis.

InstaForex has created a special training course for beginners, which includes basic information about the features and secrets of successful trading on world markets.

*Ticker is a short name of an asset listed on the exchange.

Factors influencing CD Projekt shares

The value of CD Projekt’s shares depends on several factors. The most common ones are:

  • Success of released products
  • Constant update of games and release of new versions. As mentioned above, the company won luster with clients thanks to sequels of computer games. If the company fails to keep up with it, gamers quickly switch to innovative products of competitors.
  • The company's sales volumes
  • Total profit and income of the holding
  • Number of active users of additional services
  • Fundamental factors*
  • Additional services
  • Feedback from the target audience and expert assessments
  • The state of the EU economy
  • The prospects of global stock markets
  • Competitors’ new products
  • Acquisition of new assets and agreements with new partners
  • Reshuffle in the management and personnel structure of the company

Stay up to date with the latest news in CD Projekt and the state of the IT sector around the world in real-time by using a special Forex Analysis & Reviews section on InstaForex website.

Dividend policy

CD Projekt pays dividends on shares annually. The company made payments to the shareholders in May of this year. The next payment is scheduled for May 2022.

The bulk of CD Projekt's profit goes to the further development of the holding. Stock experts often recommend investors who are focused on dividend payments to choose more profitable market instruments. However, CD Projekt shareholders can make hefty returns on the volatility of the company's shares. In 2019 and 2020, the stock yield saw an increase of 10% in just a few days.

Currently, analysts recommend using the high volatility of the company’s shares for short speculative transactions.

Conclusion

Today, CD Projekt’s shares are one of the most profitable ways to invest in the computer games industry. However, before buying shares, it is important to bear in mind the high risks associated with this company's stocks.

CD Projekt’s shares may nosedive amid the release of a raw version of the game, a decline in sales, or negative feedback from gamers.

If you have firmly decided to buy shares of this IT giant, go to InstaForex website and register a trading account in just a few minutes. After that, you may invest in shares of any company you want.