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Motorsport Games to Announce Third Quarter Financial Results

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Ellis Hobbs Fact-checked by Matt Monaco
Updated 11/9/2025, 8:15 am ET | 5 min
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Motorsport Games Inc.’s stocks have been trading up by 61.64 percent due to promising developments.

Media industry expert:

Analyst sentiment – neutral

  1. Motorsport Games Inc. (MSGM) currently occupies a challenging market position defined by mixed performance metrics. The company’s remarkable EBIT and EBITDA margins of 68.5% and 77%, respectively, indicate strong operational efficiency. However, the negative pre-tax profit margin of -137.9% highlights substantial pre-tax losses, raising concerns about sustainable profitability. Revenue growth remains problematic, with declines over the past three and five years. A current ratio of 1.9 suggests adequate short-term liquidity, but the return on assets of -78.27% is alarming, underscoring inefficiencies in asset utilization. Notably, management effectiveness, with a negative return on equity of -134.07%, points to potential strategic missteps. Collectively, these mixed metrics suggest a company in need of strategic refocusing.

  2. Recent weekly price action indicates significant volatility for MSGM. Notably, the price spiked dramatically from an open of $2.31 to a high of $5.69 within the week, before closing at $3.54. Such a large intra-week range suggests speculative trading activity. Analyzing the 5-minute candle patterns reveals support around $3.20, while resistance is evident at $4.10. The dominant trend appears to be bullish with increasing price momentum. A short-term trading strategy could involve buying at current levels, provided prices remain above $3.20, with a target near the previous highs around $5.00. Monitoring volume is crucial; sustained high volume would reinforce the bullish outlook.

  3. The recent corporate developments for MSGM are pivotal. The release of ‘Le Mans Ultimate’ Version 1.0 and ownership of simulation platforms indicate a strategic focus on expanding digital offerings. This aligns MSGM with growing trends in interactive multi-media and esports. Despite these positive product developments, the company’s financial benchmarks underperform relative to media industry peers, largely due to profitability challenges. The third-quarter financial release and ensuing analysis will serve as a catalyst for investor sentiment. Resistance is identified at $5.00, with support found around $3.20. Overall, cautiously optimistic perspectives are warranted provided MSGM addresses strategic and operational deficiencies effectively.

Candlestick Chart

Weekly Update Nov 03 – Nov 07, 2025: On Sunday, November 09, 2025 Motorsport Games Inc. stock [NASDAQ: MSGM] is trending up by 61.64%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Motorsport Games Inc.’s recent earnings report offers a window into the company’s current fiscal health and strategic progressions. With key products like rFactor 2 and KartKraft, the organization has reported a total revenue of approximately $8.69M. Such figures show a significant presence but also shed light on the challenges presented by a declining three-year revenue trend of -13.93%.

Examining the profitability, the EBIT margin stands at a substantial 68.5%, reflecting strong operational efficiency. However, profitability ratios like the pretax profit margin at -137.9% suggest difficulties in achieving net success after operation costs. Given the robust gross margin of 72.5%, the need to reconsider expense management strategies becomes evident. This difference between operational and net profitability points to the potential impact the forthcoming financial disclosures may impose on market perceptions. Moreover, the enterprise value is aligned with $8.14M, and a price-to-sales ratio standing at 2.66 indicates investor sentiments regarding sales efficiency in the company’s valuation.

More Breaking News

Intraday stock movements have exhibited a fluctuating trajectory, with highs markedly spiking to $5.69 within recent trading days. Such volatility might pique trader interest, especially with an upcoming earnings call poised to influence market sentiment.

Conclusion

Motorsport Games Inc. remains at a significant juncture, balancing operational successes against broader revenue challenges. With an emphasis on engagement through a well-strategized financial reveal, and bolstered by innovative game releases, market expectations gravitate towards sustainable growth and operational refinement. As millionaire penny stock trader and teacher Tim Sykes says, “It’s not about how much money you make; it’s about how much money you keep.” This underscores the importance of not just generating revenue, but also optimizing profitability for the company. As stakeholders anticipate discernible shifts post-conference, the dialogue set to unfold will likely steer future trading narratives and stock evaluations.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”