Tuesday, July 20, 2021

Selling Gravity (GRVY) @ $98.82 (28.14% Loss)

 Gravity is a south Korean video game company.

- Gravity generated $93 Million in revenues in Q1.

- 43.6% of revenue comes from a single game - Ragnarok M: Eternal Love.

Though revenue and profits grew, Revenues from Ragnarok were down 6.6%. This means the game is loosing popularity and that Gravity needs to launch another hit product. Since there is no way of knowing if such a hit is in the cards, I'm choosing to exit this position. This is especially relevant in the gaming space.

- My takeaway from this investment is to avoid "One hit wonders" in the future.

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