iCandy (ASX:ICI) share price sinks despite positive update to ASX

The iCandy Interactive Limited (ASX: ICI) share price is sinking 6% today despite announcing a positive update. Here's the details.

| More on:
man bending over to look at red arrow crashing down through the ground

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The iCandy Interactive Ltd (ASX: ICI) share price is backtracking in mid-morning trade. This comes despite the company announcing the successful completion of a trial for its new Claw Stars game.

At the time of writing, the games and digital entertainment company's shares are fetching for 9.4 cents, down 6%.

Strong results from trial

Investors appear unfazed by the company's latest update, sending iCandy shares lower.

In its announcement, iCandy advised that throughout the early-trialling of Claw Stars, its studio team were receiving feedback from gamers. In response, iCandy's developers made changes to the game-play and mechanics, learning from past experience with Masketeers.

As a result, Claw Stars recorded the highest ever retention rate, achieving day-1 and day-7 of 46% and 18%, respectively. In comparison, Masketeers reached retention rates during its early access trial of 37% and 8% over the same time frame.

iCandy noted that retention rates are an important metric to measure how well a game will perform when launched. The mobile gaming industry considers retention rates as an early indicator of a game's future revenue potential. While only day-1 and day-7 were recorded, the company explained that longer duration retention rates are not normally tracked. This is because the mobile game genre falls under a causal mobile game in which consumers pick up from time-to-time.

Claw Stars is scheduled to launch worldwide in June 2021, with pre-orders and pre-registrations already being accepted. So far, over 78,000 pre-orders have been made within the first week. iCandy stated that the game will be available on both the Apple App Store and the Google Play Store.

About the iCandy share price

The iCandy share price has gained more than 320% over the past 12 months and has fallen 25% year-to-date. The company's shares reached a high of 23.5 cents in November 2020, before weak investor sentiment kicked in.

Based on the current share price, iCandy has a market capitalisation of roughly $53 million, with 578.9 million shares outstanding.

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Two people having a meeting using a laptop and tablet to discuss Seven West Media's balance sheet
Technology Shares

Why are Xero shares crashing 9% today?

This cloud accounting platform provider is making big news this week.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Technology Shares

Broker says DroneShield share price can hit $2.60 this year

It may not be too late to buy this high-flying stock.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Technology Shares

DroneShield shares rocket 20% on huge news

Let's see what this market darling has announced this morning.

Read more »

Businessman cheering at desk with arms in the air
Technology Shares

Xero share price halted amid $3.9b game-changing US acquisition

The market darling is aiming to accelerate growth in the US with this major deal.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Technology Shares

This ASX All Ords share is jumping 15% on big news

This small cap is catching the eye with a big gain today. But why?

Read more »

Hand with AI in capital letters and AI-related digital icons.
AI Stocks

What does this hedge fund giant think about AI shares?

Are AI shares in a hype? Here's what this hedge fund giant thinks.

Read more »

A man holding a mobile phone walks past some buildings
Technology Shares

$10,000 invested in Life360 shares a year ago are now worth

This technology company has been one of the biggest risers over the last 12 months. 

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Industrials Shares

2 rising ASX 200 shares 'largely unaffected' by US tariffs: fundie

ASX 200 shares that are mostly immune to US tariffs may provide more short-term stability in portfolios.

Read more »