TeamViewer Stock Plunges After Announcing Manchester United Deal
TeamViewer, a remote working software business, announced a kit sponsorship deal with English giants Manchester United yesterday noon. After the announcement, their stock slumped. Let us find out why.
TeamViewer's valuation has risen during the pandemic as their business profited from the lockdown.
TeamViewer Announces Lower Ebitda margin Due To Man Utd Deal
The TeamViewer stock dropped as much as 16% amid concerns around the cost of the new shirt sponsorship deal with Manchester United. TeamViewer announced the deal and revised its 2021 adjusted Ebitda margin guidance range to 49% to 51% of billings. Last month, the firm had predicted 55% to 57%.
TeamViewer has a 35 million-euro increase in marketing expenses in 2021 due to the Man Utd deal
With the Manchester United deal, TeamViewer has a 35 million-euro increase in marketing expenses in 2021, according to Morgan Stanley analyst George Webb. However, the annual rate might be higher as it only covers the year 2021 and not the 2021-22 season.
Morgan Stanley analyst George Webb says, however, that “from a broader perspective, we believe the marketing exposure TeamViewer will garner from the deal could significantly aid the company’s traction. We would view the share price reaction today as a buying opportunity.”
In the end, the stock closed 10.8% lower than the day before.
Do you think the Manchester United deal will pay off for TeamViewer? Let us know in the comments.
