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Activision Blizzard Goes to Next Level; Expedia Travels Lower; Tempur Sealy Sleeplessness

Dan Berman
Hot Stock Minute
Activision Blizzard Goes to Next Level; Expedia Travels Lower; Tempur Sealy Sleeplessness

Activision Blizzard (ATVI) has been up more than 20% in premarket trading. France's Vivendi is selling 85% of its stake in the video-game maker. The price: $8.2-billion. Activision Blizzard is buying the bulk of the shares. Its management team is grabbing up the rest. Shares of Activision Blizzard were already up more than 38% year-to-date before this transaction.

Expedia (EXPE) has taken a fast trip down, trading as much as 24% lower since yesterday's close. Earnings are the reason, with the company posting profits of 64-cents a share excluding items when expectations were for 79-cents. Revenue also missed, but not by nearly as much. Expedia is pointing to increased competition for the shortcomings. It's also blaming poor performance by its discount site Hotwire. Prior to this plummet shares were up just 3% so far this year, although they were up about 42% since this time last year.

SolarWinds (SWI) has been down more than 21% since yesterday's close. The software company actually beat on earnings with 40-cents a share versus estimates of 36-cents. But revenue missed by $1-million dollars at $78-million, and the company had a disappointing outlook. Even prior to this plummet, shares of SolarWinds are down more than 15% this year.

You may have had trouble sleeping last night if you hold shares of Tempur Sealy (TPX). It has been down more than 12% since the closing bell. Here too the drop stems from earnings, which were 36-cents a share on an adjusted basis when estimates were for 40-cents. Without the adjustments the company actually lost 3-cents a share due to weaker sales, lower profit margins and charges from its acquisition of Sealy. Making matters worse, the company lowered its full-year forecast. Up until now, shares of the company were up 28% year-to-date.