Shares in ZOO Digital [LON:ZOO] are trading at around 32p this week, which is a long way from where they were back in July, around 66p. Much has been blamed on the Hollywood writers' strike, which almost paralysed the visual entertainment sector last year.
Analyst Johnathan Barrett at Panmure Liberum said of ZOO Digital that "customer behaviour is still not optimal" and while a recent white paper produced some level of buying, investors look to be waiting for more good news from the company.
In many respects ZOO Digital should be doing better than this. It develops localisation services which lets content be developed speedily for different languages, regions and cultures, at a time when streaming has overtaken traditional TV and cinema as the key delivery point for viewers.
Panmure Liberum reckons there is now a reassuring level of customer activity, and that when global content businesses settle down post-strike, it is expected that ZOO Digital will be able to fine tune its capacity and provide some more predictable numbers for shareholders.
Critical strategic vulnerability
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