|Bid||92.50 x 3200|
|Ask||93.80 x 1300|
|Day's Range||92.31 - 94.07|
|52 Week Range||86.90 - 139.91|
|Beta (3Y Monthly)||1.18|
|PE Ratio (TTM)||29.27|
|Earnings Date||Feb 5, 2019 - Feb 11, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||122.96|
Activision''s (ATVI) 2019 Overwatch League sees participation from eight new teams that brings the total number of teams to 20.
2K and Firaxis Games today announced that Sid Meier’s Civilization® VI: Gathering Storm, the second expansion pack for the critically acclaimed and award-winning Sid Meier’s Civilization® VI, is now available for Windows PC. Civilization VI: Gathering Storm presents players with an active planet that generates new and dynamic challenges for the Civilization series, with new features and systems including Environmental Effects, new Engineering Projects and Consumable Resources for players to experience a living world full of danger and opportunity.
Activision Blizzard Surges Even as Analysts Lower Target PriceActivision Blizzard Activision Blizzard (ATVI) released its fourth-quarter earnings yesterday after the markets closed. The company’s earnings were largely in line with estimates.
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Amid the vast technology sphere, the video game segment is usually a no-brainer. Worldwide growth and mainstream acceptance have fueled gaming developers and publishers like Activision Blizzard (NASDAQ:ATVI). Unfortunately, Activision stock received a hammering due to competitive threats, disappointing revenues and broader market weaknesses.Things got even worse for the gaming giant earlier this month. Fears that management had no real answer for the free-to-play (FTP) Fortnite rattled ATVI stock. Moreover, competitors like Take-Two (NASDAQ:TTWO) suffered sharp volatility during this time despite posting relatively strong results.Additionally, the latest DLC (downloadable content) expansion from Activision's prized franchise, Destiny, failed to live up to expectations. This, from Activision chief operating officer, Coddy Johnson:InvestorPlace - Stock Market News, Stock Advice & Trading Tips"We have not yet seen the full core re-engage in Destiny, which has kind of led to the underpeformance against our expectations to date. Some players we think are still in wait-and-see mode. So when you're in, you're deeply engaged. If you're not, we're hoping now's the time to bring players back in and win them back."While this latest disappointment played a role in Bungie's split with Activision, the two companies have had bad blood for years. It was reported that Bungie employees "cheered and popped champagne." Now game developer Bungie gets to keep Destiny. While the fallout wasn't surprising considering the years of tension, it leaves Activision stock with a critical content gap.Besides these headwinds, we haven't yet discussed the category five hurricane. In a rumor that was later confirmed, ATVI will cut 775 jobs, or 8% of its workforce. Typically, companies don't announce massive layoffs following a record revenue-generating year. However, disappointments have sadly become the norm for ATVI stock.That said, embattled shareholders and speculators saw some reason for optimism. Despite reporting mixed results for its fourth-quarter fiscal 2018 earnings report beating on earnings per share but missing on revenue -- Activision stock gained 3% on Tuesday's after-hours session, and is still trading 3% higher going into the open.Still, discount-diving ATVI has substantial risks. While the earnings print was okay, the company's guidance was decidedly awful. For both the upcoming Q1 and full-year 2019, management badly undercut analysts' expectations. * 9 U.S. Stocks That Are Coming to Life Again Can ATVI stock break out of its rut, or is the gaming giant merely setting up a bull trap? Here are my three main takeaways: Layoffs Potentially Streamline Activision StockIn business, we have two types of layoffs: productive and unproductive. The former is typically a response to a new, challenging environment. The latter usually stems from desperation as management attempts to demonstrate positive metrics on paper.Regarding the recent ATVI layoffs, we have confidence that we're dealing with the productive variety. For one thing, you can just look at the charts. Leading to the Q4 2018 disclosure and after it, Activision stock bumped up significantly.Furthermore, let's consider the details. Activision's restructuring plans won't impact development for new games. Instead, the job cuts will only impact "non-development teams and support staff."Given the wake-up call that the industry received over the past several months, it's unnecessary to keep the drag. In lieu of having a well-stocked administrative department, management promised to focus on live services, esports and advertising.As our own Laura Hoy points out, esports represents a "bright spot" for Activision stock, especially the company's Overwatch league. She writes:Not only has Overwatch been wildly popular, but the esports sector looks poised to continue growing exponentially. Some even believe that the genre will eventually grow to become a part of America's collegiate sports. So far, the growth runway for esports games looks impressive and as long as Overwatch is able to continue drawing in new users and holding on to players, it could be a growth engine for ATVI stock.No one likes layoffs. However, gaming companies have become complacent in addressing their consumer base. This is a painful but much-needed move. Easy Answer to FortniteWhenever you have a discussion about video game stocks, you can't avoid talking about Fortnite. Admittedly, I underestimated both the popularity and longevity of this family-friendly shooter game. Nevertheless, every product, even a juggernaut like Fortnite, has vulnerabilities.Primarily, the gaming phenomenon isn't that unique. Yes, it features a "battle royale" mode that everyone went nuts over. But even if that concept originated from Fortnite (it didn't), it isn't enough to construct a competitive firewall.We're not talking about compelling storylines and characters, attributes that game developers have considerable difficulty perfecting. Nor are we discussing lucrative licensing rights that are virtually impossible to overcome. Instead, we're squabbling over a gameplay mode.I concede that up until recently, the major gaming companies failed to dent Fortnite's armor. However, Electronic Arts (NASDAQ:EA) may have fired the first meaningful shot. Just recently, EA released its own FTP game called Apex Legends. Early indications suggest exceptionally positive feedback. Impressively, Apex convinced a few high-profile Fortnite advocates to jump ship towards the possibly new phenomenon. * 10 Stocks That Every 20-Year-Old Should Buy Of course, if that's all it takes - copying the FTP and battle royale mode - then don't give up on Activision stock! Arguably, the underlying firm has the greatest library and expertise in immersive first-person shooter games. Technical Risks for ATVI StockFundamentally, I'm confident that Activision stock will eventually find favor with Wall Street. Once the restructuring dust settles, ATVI will enjoy a leaner, meaner framework, one that focuses on productive endeavors. And recent developments show Fortnite isn't impenetrable.But should you jump on ATVI stock now? It seems tempting. On the one hand, a mismatch exists between the company's fundamental strengths and its technical discount. This may be the setup that contrarians dream about.On the other hand, I worry about the steep decline shares have suffered over a short timeframe. Click to EnlargeMoreover, the "bullish" response to the onslaught is completely substandard. Following last October's selloff, ATVI largely went rangebound before collapsing.Currently, we're witnessing a significant bump up after the Q4 results. But compared to the bearish attacks, a 3% move here or there doesn't do jack. It also leaves Activision stock dangling dangerously in a no-support zone.Like I said earlier, I'm optimistic about the long run. I think it's wise to creep into ATVI at this level -- and I do mean creep. The possibility that Activision shares could dip to $35 or below is a real one.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 7 Forever Stocks to Buy for Long-Term Gains * 5 Self-Driving Car Stocks to Buy Compare Brokers The post 3 Takeaways for Activision Stock Following Q4 Earnings appeared first on InvestorPlace.
Take-Two, Las Vegas Sands, Unilever, Rio Tinto and Celgene highlighted as Zacks Bull and Bear of the Day
Take-Two Interactive Software, Inc. (TTWO) has been struggling lately, but the selling pressure may be coming to an end soon.
fell 4.5% to close at $89.25 on Tuesday after BMO Capital downgraded shares of the gaming company to underperform from market perform. Analyst Gerrick Johnson also cut his price target to $80 from $119.
Wall Street analysts had good things to say about video game publisher Electronic Arts on Tuesday, but soured on Activision Blizzard and Take-Two Interactive Software. EA stock climbed.
Electronic Arts (NASDAQ:EA) has desperately needed good news of late. Electronic Arts stock touched a two-year low in December, at which point EA had shed half of its value. Even with some dip-buyers arriving in the past few weeks, EA remained well off its highs.A third-quarter earnings report that disappointed -- as even EA management admitted -- sent Electronic Arts shares tumbling again. The success of Epic Games' Fortnite continued to weigh on EA as well as public rivals Activision Blizzard (NASDAQ:ATVI) and Take-Two Interactive (NASDAQ:TTWO).But EA finally has received the good news it was looking for. The company's Apex Legends -- a battle royale-style game in the mold of Fortnite -- looks like a hit. And it's done wonders for EA stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs of this writing, Electronic Arts stock has bounced 25% in three-and-a-half trading sessions. The strength isn't coming from the sector -- TTWO and ATVI remain at the lows -- and it isn't coming from the rest of the portfolio given the weak fiscal Q3 report. The early strength of Apex Legends simply has driven that much optimism toward EA stock. * Buy These 5 Stocks to Play the Megatrend of the Century Some optimism is merited. But the 25% gain here looks to be too much. It already prices much -- if not all -- of the game's potential success. And it ignores the fact that the rest of Electronic Arts' portfolio has some very real concerns. Apex Legends Drives EA Stock HigherTo be sure, Apex Legends is a big potential mover for Electronic Arts stock. The game has signed up more customers faster than Fortnite did. Analyst firm Baird estimated potential 2020 revenue of $500 million. Bank of America estimated a high-side case of $600 million.Against trailing-twelve-month revenue of $5.3 billion, the game could drive an additional 10% in revenue. Considering the high margins on incremental revenue, meanwhile, the profit contribution could be even higher.Estimating the exact potential of Apex Legends remains a guessing game, but the impact on EA stock could be huge. Fortnite, according to one source, generated $2.4 billion in revenue last year. According to another, Epic Games booked some $3 billion in profit. (That latter figure seems aggressive, however, given a reported valuation of $15 billion for Epic.)Apex Legends, then, doesn't have to be the 'next' Fortnite to have a material impact on EA financials. Even a second-place standing would provide solid growth against EA's current totals of about $5.3 billion in revenue and a little over $1 billion in adjusted net income. Has the Rally Gone Too Far?That said, the rally of late has incorporated quite a bit of upside from Apex Legends. EA stock has added roughly $5 billion in market value in the last four sessions. There may have been some help from a "dead cat bounce" following the disappointing Q3 report. But whatever the exact figure, the market already has added at least a few billion dollars to EA's valuation based on the early returns from the game. In other words, a solid second-place standing relative to Fortnite already looks close to priced in.Meanwhile, "early returns" is the operative figure there. The game itself still has a long way to go. And Electronic Arts itself has to figure out how to monetize the game wisely. That will require some nimble movements, considering that EA undermined consumers' trust with its ham-handed efforts around Star Wars Battlefront II. EA also has to make sure not to cannibalize Apex Legends with the March launch of the battle royale update for Battlefield V.At the least, given its experience with Battlefront, EA is likely to go slow in terms of managing in-game monetization. And so investors expecting a big boost to near-term financials from Apex Legends may be disappointed. The Other Risks to Electronic Arts Stock PersistAfter the rally past $100, there is a case for caution here. Apex Legends is a potential hit -- but investors have noticed, and bid EA stock up accordingly. And EA still needs to capitalize on the early momentum -- and properly manage its revenue and profit potential going forward.Meanwhile, in the rest of the portfolio, nothing has changed since the Q3 report. Growth concerns persist. FIFA 19 -- historically the company's largest game, at 11% of revenue -- sales were below expectations. The sports portfolio on the whole, per the Q3 conference call, is expected to see revenue flat to up 5% in 2020. Battlefield V, too, has disappointed.That's not changing any time soon. Overall, according to the call, bookings are supposed to grow just low single-digits in fiscal 2020. So are earnings. Margin benefits from the shift to digital -- as EA sold games direct instead of through retailers like GameStop (NYSE:GME) -- are moderating. In-game monetization revenue growth is slowing substantially.There's simply not a lot of growth left in the legacy portfolio -- which is why investors have punished EA stock over the past few months. And yet EA stock, against current FY20 estimates, trades at 25x this year's adjusted EPS guidance even backing out net cash.That's a multiple that already assigns quite a bit of success to Apex Legends. So does the 25% rally in EA stock. To keep the rally going over the long-term, EA is going to have to succeed with Apex Legends and find more growth elsewhere.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Every 20-Year-Old Should Buy * 10 Best Dividend Stocks to Buy for the Next 10 Months * 10 Monster Growth Stocks to Buy for 2019 and Beyond Compare Brokers The post Don't Count on Apex Legends to Save Electronic Arts Stock appeared first on InvestorPlace.
Shares of Take-Two Interactive Software Inc. are down more than 5% in Tuesday morning trading after BMO Capital Markets analyst Gerrick Johnson downgraded the stock to underperform from market perform. He also lowered his target price to $80 from $119. Johnson is concerned that while initial sales of "Red Dead Redemption 2" were strong, "buzz around this once highly anticipated game has dissipated markedly." This suggests to Johnson that Take-Two might see a "lapse" in engagement, which could make it hard for the company to "monetize to desired levels." He expects continued pressure on videogame stocks, including Take-Two. The rising popularity of new free-to-play games "could pivot the video game industry away from one that generates steady streams of high margin revenue back to more of the hit-driven model we saw in prior generations." Shares of peer Electronic Arts Inc. are up 3% in morning trading after the company announced strong user numbers for its "Apex Legends" title. Activision Blizzard Inc. reports results this afternoon. Take-Two's shares have fallen 19% over the past three months, while the S&P 500 has risen 0.3%.
Activision Blizzard ATVI reportedly plans to announce job cuts when it posts fourth-quarter earnings Tuesday afternoon . Its shares sank to their lowest level in two years on Monday following the report, the latest piece of news to rock the stock. Last Wednesday, shares of the video-gaming giant dropped more than 10 percent after competitors Electronic Arts EA and Take-Two Interactive TTWO posted disappointing earnings.
Electronic Arts Surges as Apex Legends Continues Its Strong RunApex LegendsElectronic Arts (EA) is trading much higher in premarket trading today. The stock has seen significant buying interest on optimism over Apex Legends, its first free-to-play
The market did its best to put investors to sleep on Tuesday, underwhelming even the most conservative of traders. It was like a trading session straight out of summer where managers, investors and seemingly every market participant is out of town. In any regard, we had enough movers and shakers to find a few top stock trades for Tuesday. Top Stock Trades for Tomorrow 1: Activision BlizzardA week ago we were covering the massive declines in Activision Blizzard (NASDAQ:ATVI), Take-Two Interactive Software (NASDAQ:TTWO) and Electronic Arts (NASDAQ:EA). At the time, we noted the heavy volatility and so far, that volatility has continued.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs EA goes between sinking ship and rocket ship, ATVI stock is breaking to fresh lows on reports of a big layoff. The move comes just a day before Activision reports earnings on Tuesday after the close. * 7 Breakout Stocks In Early 2019 Some investors may be tempted to go long, but the fundamental situation continues to be a mixed bag. It would be hard to get a panic sell down to $35, but if we do, that 12.5% drop could trigger a wave of buyers. If so, that could put in a capitulation bottom, attractive for longer term investors. Let's see how it trades ahead of earnings and post-results. Top Stock Trades for Tomorrow 2: Under ArmourThis one has been choppy lately, but I still think Under Armour (NYSE:UAA) is setting up nicely. Nike (NYSE:NKE) and Lululemon (NASDAQ:LULU) continue to push higher, so the industry momentum is there.I love that UAA is holding up over all of its major moving averages. The bounce off the 21-day and 50-day moving averages is encouraging and if we can get some more traction, I want to see UAA get into that December gap. If it can, it could fill up to $22.The only wild card? Earnings, which are due up on the 12th. If the move is lower, look for support on the backside of prior downtrend resistance, near $18.50 to $19. On a rally, look for a close over $22 and for that level to become support going forward. A move over $22 could trigger a rally to the highs near $24 to $25. Top Stock Trades for Tomorrow 3: ShopifySoftware stocks have been red-hot, and Shopify (NASDAQ:SHOP) isn't sitting out any of the action. The stock made new all-time highs on Monday and is buoying over this $170 to $175 area nicely.Mainly though, I want to see SHOP hold up over prior downtrend resistance. That's a wide range, admittedly, but this is a volatile name. Conservative traders can use the 21-day moving average as their line of reference if they feel more comfortable. Use caution though, as Shopify will also report earnings on the 12th. Top Stock Trades for Tomorrow 4: General ElectricEnough of the pre-earnings looks, let's see what post-earnings General Electric (NYSE:GE) has been up to. Shares nearly challenged that $11 to $11.25 area we outlined after the initial earnings jump, the level that GE previous fell from as the "dam began to break."Holding up over the 100-day moving average though and GE still looks okay from the long side. Admittedly, its fundamentals are still mixed, but from a trading perspective, bulls can justify a long position over $9.50. A close below this area would change the rhetoric. Top Stock Trades for Tomorrow 5: RokuShares of Roku (NASDAQ:ROKU) took an early beating on Monday, falling more than 6% at one point. With a relatively calm market, finding a catalyst was somewhat difficult, although many are now pinning it on a negative report from Vertical Group. * 10 Best Dividend Stocks to Buy for the Next 10 Months Roku shares have pared some of those losses, now down just 3% on the day. The recovery has kept ROKU's charts intact, albeit, somewhat less bullishly than before. The 100-day moving average and short-term downtrend resistance (purple line) continue to keep this one in check. As long as Roku stays above Monday's lows, bulls are okay. ROKU stock could certainly break down, but currently, it looks like a breakout to $50+ may be brewing.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Fundamentally Sound Dividend Stocks to Buy * 5 Reasons Reeling FAANG Stocks Won't Deliver Big Returns * 3 Reasons Canopy Growth Could Burn You Compare Brokers The post 5 Top Stock Trades for Tuesday: ATVI, GE, UAA, ROKU, SHOP appeared first on InvestorPlace.
Gaming stocks Electronic Arts and Take-Two Interactive held value levels at their lows, giving traders the opportunity to "catch a falling knife."