Best Buy buckling on earnings, EA scoring on Madden 15, Amazon twitching higher

Yahoo Finance
August 26, 2014

Best Buy (BBY): Shares are getting smacked with a rolled up newspaper, down as much as 5%. The consumer electronics giant reported earnings of 44-cents a share, well ahead of estimates. Investors were troubled by a slight revenue miss and continuing declines in store traffic. The company expects same-store-sales to decline in Q3 and Q4 but did note that on-line revenues improved by 22%.

Electronic Arts (EA): The largest video game publisher for next gen consoles is trending as today marks the launch of it's latest football game, Madden 15. The much anticipated video game, which some say coincides with breaking records for people calling in sick for work, has become something of a cultural phenomenon for football and video-game fans alike. While sales of the game dropped last year due to the transition to the newer consoles, this year's version is likely to sell six to seven million copies of the game, at $59.99 a pop. (AMZN): Shares are higher by 1.5% after the company announced that it had purchased on-line game voyeur service Twitch for nearly $1 billion. Old timey "value investors" may blanch but it turns out watching other people play games is an actual thing. Despite persistent rumors that it would be sold to Google, Twitch accepted Amazon's bid because in the words of CEO Emmet Shear "they believe in our community, they share our values and long-term vision." $970 million in cash presumably didn't hurt.

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