105.93 0.00 (0.00%)
After hours: 4:25PM EST
|Bid||105.81 x 800|
|Ask||106.58 x 1300|
|Day's Range||104.58 - 107.49|
|52 Week Range||92.81 - 139.91|
|Beta (3Y Monthly)||1.32|
|PE Ratio (TTM)||57.76|
|Earnings Date||Feb 6, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||142.90|
Scott Kessler, CFRA equity research director, joins "Squawk Box" to talk about what he's looking for in the tech sector in 2019.
Market historians will likely remember the 2010s as a pivotal decade for esports. Although gamers can trace its origins as far back as 1972, it took advances in the internet to make esports a global phenomenon. A myriad of tech companies played a role in developing and supporting these games, paving the way in making esports what it is today. By understanding esports and all of the stocks that power it, investors can profit from this growing phenomenon. ### What Is Esports? Put simply, esports is competitive video game playing. Competitions usually take place in multiplayer and team competitions, enabled by advances in streaming and live venues that help bring together tens of millions of gamers with similar interests. It has become so popular that the International Olympic Committee (IOC) has even looked at it as a possible Olympic sport. The IOC has so far rejected this idea. InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Esports Stocks to Buy Despite the IOC's sentiments, this has become a favorite gamer and spectator event. Among esports stocks, Activision Blizzard (NASDAQ:ATVI) has stood out, most recently with last year's deal with Disney (NYSE:DIS) to broadcast the Overwatch League on ESPN and Disney XD digital cable and satellite television. Naturally, investors also look to peers such as Electronic Arts (NASDAQ:EA), Take-Two Interactive (NASDAQ:TTWO), and now, China-based Tencent (OTCMKTS:TCEHY). Tencent operates in many different fields. However, its gaming division alone dwarfs its largest American gaming peers. * 10 Growth Stocks With the Future Written All Over Them Of these, I would recommend EA stock at this time. It trades at a forward PE ratio of about 17.3x. Also, profit growth appears set to take off again. Analysts predict an 11.8% profit increase this year, and an average annual rate of 13.1% over the next five years. EA has lagged Activision's esports promotion efforts. However, EA games such as Battlefield, Madden NFL, and FIFA have become popular. Its FIFA 18 Global Series attracted more than 20 million competitors alone. Between its low multiple and prominent games, EA is in a position to profit investors and become an up-and-coming player in the esports arena. ### Cadre of Stocks in Esports Ecosystem To profit further, investors also need to consider the non-gaming stocks that make esports possible. Given the computing power of PCs, gamers consider these systems vastly superior to gaming consoles for speed. Players also need the fastest, most-powerful memory chips available. This need benefits Micron (NASDAQ:MU). The gaming industry will always purchase its fastest and most-expensive chips regardless of its demand situation. Microsoft (NASDAQ:MSFT) has also become a vital esports stock. While its Xbox gaming console is one path into the industry, esports games players prefer to play on PCs. That's why Microsoft's Windows software plays a critical role in the gaming market despite the PC's overall decline in importance elsewhere. Meanwhile, headset maker Turtle Beach (NASDAQ:HEAR) has found its niche by making its headsets the gaming accessory of choice. Still, in this market, I see Nvidia (NASDAQ:NVDA) as the hardware stock of choice. Today, most investors think of Nvidia for artificial intelligence (AI), self-driving cars, and virtual reality (VR). However, some might forget that Nvidia got its start as a chip company focused on gaming. Despite the new niches, gaming remains a vital part of its business. Like with MSFT and MU, gaming provides a foot in the PC market that will persist despite the PC's falling popularity. * 5 Dow Jones Stocks to Sell Before Things Get Uglier Thanks to a chip glut and a tech-stock selloff in the fall of 2018, NVDA stock has again become a bargain. In this latest swoon, its price-to-earnings (PE) fell to about 21x. However, after this fiscal year, profit growth should resume. Wall Street expects average profit growth of 15.1% a year over the next five years. Bolstered by AI, VR, and of course, esports, NVDA should become the premier chip stock over the next few years. Finally, investors should also remember that the ATVI deal makes Disney a "gaming stock" in a technical sense. Its forward PE multiple stands at 15.1x. Also, profit growth bolstered by a move into streaming, and now, gaming should help the media company recover. ### The Bottom Line on Esports Stocks to Buy Esports has not only become a favorite pastime, but it has also benefited equities across the tech landscape. This activity helps gaming-related equities such as TTWO stock. However, investors need to also look at companies that enable the games. One such stock is Nvidia, the maker of the chips that makes gaming possible. As well, due to its deal with Activision, one can also argue that a media company such as Disney has become an esports stock. Like with gaming, investing in esports stock will take both skill and strategic thinking. However, by picking the right equities, traders can achieve the goal of making investing a winning esport in itself. As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post What Is Esports And Why Should Investors Care About Gaming? appeared first on InvestorPlace.
Take-Two Interactive Software Inc. will pay the National Basketball Association and its players’ union as much as $1.1 billion over seven years, a person familiar with the matter said, a window into the steep costs videogame makers can face in securing star power for their sports games. The agreement allows Take-Two’s 2K studio to continue making its NBA 2K videogame franchise and other NBA-branded games, including smartphone apps. The value of the deal, based on a percentage of sales of Take-Two’s NBA games, is more than double the organizations’ prior licensing tie-up in 2011, the person said.
Videogame publisher Take-Two Interactive Software Inc's 2K label, the National Basketball Association and the National Basketball Players Association on Tuesday announced a multi-year global partnership ...
The National Basketball Association (NBA), National Basketball Players Association (NBPA) and 2K, a wholly-owned label of Take-Two Interactive Software, Inc. (TTWO) and publisher of the leading global basketball video game NBA 2K, today announced a significant, multiyear global partnership extension. The agreement expands upon the success of NBA 2K, the top-rated and top-selling NBA video game simulation series for the past 17 years* that has sold-in more than 86 million units worldwide.
# Take-Two Interactive Software Inc ### NASDAQ/NGS:TTWO View full report here! ## Summary * Bearish sentiment is low * Economic output in this company's sector is expanding ## Bearish sentiment Short interest | Positive Short interest is low for TTWO with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $10.61 billion over the last one-month into ETFs that hold TTWO are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit | Positive According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. ## Credit worthiness Credit default swap CDS data is not available for this security. Please send all inquiries related to the report to email@example.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Check out the companies making headlines before the bell: JPMorgan Chase JPM – The bank reported quarterly profit of $1.98 per share , below the consensus estimate of $2.20, with revenue essentially in line.
Take-Two Interactive Software Inc will pay the National Basketball Association and its players' union up to $1.1 billion over seven years, the WSJ reported on Tuesday, citing a person familiar with the ...
Rockstar Games is firing back in a legal tussle over the use of a Pinkerton security company’s name in its video game “Red Dead Redemption 2.”
Once among the highest-flying stocks in the market, shares of video game publishers Electronic Arts (NASDAQ:EA), Take Two Interactive (NASDAQ:TTWO), and Activision (NASDAQ:ATVI) have all fallen off a cliff over the past several months. All three stocks peaked in mid-to-late 2018. Since peaking, TTWO stock has dropped 20%, while both EA stock and ATVI stock have fallen a whopping 40%. Across the board, the bull thesis looks compelling for video game stocks here. Near-term headwinds blown by disappointing back-half 2018 sales are legitimate but overstated and have been overpriced into these stocks. The much broader and more powerful multi-year trends at play here, including deeper digital adoption, a steady rise in micro-transactions, and the mainstream emergence of eSports, remain favorable. To be sure, those near-term headwinds will inevitably phase out. They will be replaced by favorable multi-year trends. This transition will ultimately push video game stocks way higher. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This is especially true for EA stock. Electronic Arts stock has dropped 40% since July. Since then, there's been some negative holiday sales reads regarding two of the company's headline titles, Battlefield and FIFA. Meanwhile, there's some concern about margins getting hit next year due to licensing fees related to a new Star Wars game. But, again, these are all near-term headwinds. In the big picture, thanks to a robust content portfolio, the games maker has broad exposure to the three important multi-year trends in the video game industry. That broad exposure will ultimately boost EA stock the medium-to-long term as the more immediate headwinds are replaced by favorable multi-year growth trends. ### Near-Term Headwinds Are Legitimate To be sure, the headwinds weighing on EA stock are very real. The consensus read from analysts is that gamers have not engaged with FIFA 19 ever since its debut in late 2018, despite being the number two video game sold globally in 2018. Other titles have been weak, too. A glance at the list of top video games from 2018 will show you that games from Activision and Take-Two dominated the market. Both companies had headline launches in their core franchises, Call of Duty and Red Dead Redemption, respectively. * Morgan Stanley: 7 Risky Stocks to Sell Now Electronic Arts didn't really have a big game last year. Outside of FIFA 19, EA's showing in 2018 was relatively weak. That contributed to a down-guide in late October, and that guidance has weighed on shares ever since. ### Long-Term Tailwinds Are Far More Powerful Weak sales performance in the back half of 2018 is a very small deal in the big picture for EA stock. In that big picture, there are three multi-year trends in the video game industry that matter: * Increased digital download adoption and the eventual birth of video game streaming. * Continued growth in video game micro-transactions and live services. * Mainstream emergence and widespread adoption of eSports. Thanks to certain growth initiatives and a robust content portfolio that includes franchises like Battlefield, FIFA, Madden, Star Wars, and Sims, EA has broad and favorable exposure to all three of these growth trends. For example: * Through Project Atlas, EA is arguably the leader in pioneering what the company calls "cloud gaming", which is essentially video game streaming (being able to play a video game through a streaming service, not through a console). * Many of EA's games lend themselves to micro-transactions. These micro-transactions aren't going anywhere anytime soon. While Battlefield V launched without micro-transactions, rumors are swirling that a premium Battlefield V currency is coming in January. The broad implication is that the era of micro-transactions will live on for EA. * EA's titles lend themselves well to competitive gaming. As such, EA hosts multiple eSports events, including the FIFA eWorld Cup, Madden NFL Championships, and NHL Gaming World Championships. EA is also plunging into the mobile eSports world with Command & Conquer: Rivals. Overall, the big picture fundamentals supporting EA stock remain favorable. While there are near-term headwinds related to sales strength in the back half of 2018, those headwinds are ephemeral. They will leave just as quickly as they arrived. * 7 Stocks at Risk of the Global Smartphone Slowdown As noted above, the important things will stay in the picture. EA will continue to push forward on cloud gaming and benefit from digital downloads. The company will continue to earn higher revenues and grow margins through micro-transactions. And, Electronic Arts will also continue to expand its eSports presence. All three of those things are positive long term developments that will ultimately drive EA stock higher. ### The Price Is Right At current levels, the price is right to buy EA stock. High margins, strong cash flows, a wide content moat with enduring demand, and favorable multi-year trends have kept EA stock trading at a 23x forward earnings multiple over the past five years. However, the past 12 months have seen the forward earnings multiple spend most of the time above 25x. Today, EA stock's forward earnings multiple is below 20x. That's an unnecessarily big discount. Margins are still high. Cash flows are still strong. The content moat is still wide. And the multi-year growth trends remain favorable. Thus, a rebound to a 25x forward multiple seems reasonable. Alongside continued earnings growth, that should power big gains in Electronic Arts stock. ### Bottom Line on EA Stock EA stock has been unnecessarily beaten up on overstated near-term headwinds that will inevitably fade from the picture within the next few months. As they do, Electronic Arts stock should rebound, given strong longer-term fundamentals. This rebound will be powered by both earnings growth and multiple expansion, giving the stock double firepower to head way higher in 2019. As of this writing, Luke Lango was long EA, TTWO, and ATVI. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post Positive Secular Trends Imply Big Upside For Electronic Arts Stock appeared first on InvestorPlace.
By contrast, Activision's quarterly report is expected to be tremendously noisy with Destiny's departure adding to concern about executives fleeing to Netflix NFLX and Square SQ as well as a lagging pipeline of products to keep the ship sailing straight. The departure of the historically profitable franchise comes after reports of discord between Destiny developer Bungie's team and Activision's vision for the franchise and Activision falling out of touch with its core customers. The second installment in the franchise was noted by Activision's management to be unprofitable and thus immaterial to numbers, but many have noted that it was actually Activision's fault as its increasing push of in-game purchases actually pushed its huge user base away from the game.
After months of terrible sentiment, the stock market is finally enjoying a win streak. The S&P 500 closed green for five straight days. Sellers are no longer in complete control. This week, every effort to fade rallies has failed. Even on Thursday after a shaky start, buyers stepped in and turned a red day into green. Unfortunately there are still pockets of weakness. Gaming stocks still lag the S&P. Activision (NASDAQ:ATVI) is not one able to shrug selloffs yet. ATVI is still is suffering down almost 30% in a year. And this morning, Activision stock is looking to open down 10% on a material headline to its business. ATVI announced that it split away from its design and development partner Bungie and released its rights to popular online shooting game Destiny to them. The company cited reasons that the venture failed to meet profitability goals. So this could theoretically be a good thing in the end. Meanwhile, it is a giant step backwards for the stock today. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Catching falling knives is hazardous under normal circumstances. Doing it after a serious headline that changes the profit-and-loss statement is even more dangerous. It could cost many digits for those who dare to do it. This is a material change in ATVI's income stream. Some experts think that it will free up resources so that management will be able to concentrate on more profitable streams. Most Wall Street analysts still rate it as a buy, even as it still trades at the very lowest of their price range. At some point, some of them will capitulate with negative headlines. * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors This is all to say that Activision stock is on its heels and, in already edgy markets, it is extremely risky to buy it on this dip. But there could be constructive price action that will give the bulls some hope. The Christmas stock market dip may have placed a bottom that could act as solid floor to eventually serve as a base for today's debacle: $44 per share has been pivotal since July of 2016. Soon thereafter, ATVI broke out into a rally that saw the stock move to a double. It has since fallen 50% off its September highs. I don't expect those levels to return anytime soon, but there could be a bounce into mid-year 2019. For those who own ATVI stock, it's probably too late to sell now. If I owned it all the way down, I wouldn't sell it at a prior pivot zone. Those usually lend support on the way down. Bulls and bears will want to fight fiercely over them. But I don't add to my risk yet. I need to see how ATVI stock behaves around $44. Conversely, those looking to go long on this dip are better served waiting another candle or two. Drops of this size are usually more than one day events. Fundamentally, Activision is not cheap. It trades at a price-to-earnings ratio of 59. This is roughly the same as Take-Two Interactive (NASDAQ:TTWO), but more than Electronic Arts (NASDAQ:EA). So the value argument is not likely to lend support to its stock yet. ### What to Expect From ATVI Going Forward Buyers need reasons to brave a buy on a correction like this. For the next few days there will be few of those to surface. Sellers will have the advantage over buyers. This 10% dip is essentially a correction. And the stock needs to correct to reflect the changes in potential income. Technically, there will be a fight at $44 per share with another pivot point $4 lower. So this crisis in Activision stock will eventually pass, but the battle here should be harsh. I see no reason to buy it today, but I can add it to my watchlist as a potential buy in the next two weeks. The trade then would be to buy the bounce late into this quarter or early next. Markets in general are still in headline mode, so they add another layer of uncertainty to it. Activision stock will need the help of general Wall Street sentiment. The macroeconomic fundamentals are still healthy, but we are nervous about a massive tariff war and a flip flopping Fed. * 7 Stocks to Buy That Are Run By Billionaires The S&P 500 enjoyed a 10% rally off the Christmas lows, but in the next few days, we could retrace some of it and retest the February lows. This would be normal price action but to ATVI it would be additional downside pressure, thereby adding to the stock woes. For all the reasons cited here and the uncertainty that comes with such a material headline, I cannot recommend buying the dip today. Click here and enjoy a free video and more of my market thesis and get an ongoing free copy of my weekly newsletters. Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post The Activision Blizzard Stock Dip Is Worth Buying, But Only If You Wait appeared first on InvestorPlace.
On CNBC's "Mad Money Lightning Round" , Jim Cramer said Cleveland-Cliffs Inc (NYSE: CLF ) is the best company in the show, but the stock is not going to be a good stock if Fed tightens again. ...
It's not exactly a household name. Were it not for its hit video game franchises -- Red Dead Redemption and Grand Theft Auto -- many investors likely wouldn't have heard of Take-Two Interactive Software (NASDAQ:TTWO). But TTWO stock has been besting rivals and racking up investor gains for the last decade. That's unlikely to change in the coming 10 years as it takes on industry giants Activision Blizzard (NASDAQ:ATVI) and Electronic Arts (NASDAQ:EA). The secret to Take-Two's success? The company sticks with works and puts its management team on the same side of the table as investors. And, with the lines between different forms of entertainment continuing to blur, the next decade could be even better than the last. InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Quality Over Quantity TTWO is, at first glance, the same as any other video game developer. Some of its titles sell better than others, and every observer and gamer consistently asks "What's next?". A closer inspection of Take-Two reveals a nuanced but critical difference between the New York City games maker and its peers: TTWO focuses on the quality of games rather than quantity, and it's more likely to produce a sequel to a proven game concept than create a whole new concept. * The 7 Best Stocks in the Entrepreneur Index Case in point: "Grand Theft Auto". The franchise got its start way back in the late 90's, and has since spawned four sequels with a fifth on the way. Sequels in the video gaming industry aren't unusual. What is unusual is to see a developer extract so much value from one franchise for so long. Take-Two does it because it can. "Grand Theft Auto 5", released in 2017, was just as beloved as previous iterations were, selling a total of 90 million copies since its debut. Meanwhile, the online/multi-player version is still a draw. By constantly updating game-play, Take-Two's creation remains relevant in a sliver of the market that also includes popular online-play options like "Fortnite" and "Call of Duty". Its "Red Dead" lineup hasn't seen as many follow-ups. In fact, the second one was only released last year, eight years after the first… an eternity within the gaming world, particularly considering how much coding could have been recycled. Take-Two wanted to get it not just right, however, but build it to 'wow.' It was even willing to delay its release to ensure perfection. Strong sales of the game suggest it was time well spent, with 17 million copies purchased during its first two weeks of availability. Don't misread the message: Take-Two publishes new titles all the time. It hasn't been afraid to go back to the same well though, when it knows gamers will buy more. ### Management Incentive Also unlike its rivals, Take-Two pays its leadership in a way that encourages smart tactics rather than ill-advised risks. Actually, Take-Two doesn't pay CEO Strauss Zelnick anything. He's paid by his company, ZMC (originally known as ZelnickMedia), which is contracted by Take-Two to lead the company. ZMC's compensation is closely linked to the performance of Take-Two stock and the game maker's EBITDA though, which in turn motivates Zelnick to not just push hard, but also push smart. When Zelnick says "I'm very devoted to the success of the enterprise," he has to mean it. His paycheck entirely depends on it. It's an unusual arrangement to be sure, but one that's paid dividends -- even to investors who want the company to pick up the pace of new-game development. Over the past five years, TTWO stock has gained an impressive 520%. The next-nearest name in the industry is EA, with a 285% increase. ### Looking Ahead for Take-Two Stock Even as rival game makers are focused on the titles to be published this year for this year's consoles, Zelnick and ZMC are eyeing the future in a much broader light. * Morgan Stanley: 7 Risky Stocks to Sell Now He's a self-proclaimed entertainer at heart -- not a programmer. That may be why the company's titles are often given accolades not just for being fun, but for being visually stunning and artistic, to boot. In that vein, Zelnick sees opportunity beyond video gaming. Late last year he commented: "Can we properly think about deploying our balance sheet in addition to building our business organically, inorganically and might we touch other areas of the entertainment business in so doing? It's a possibility." He offered no specifics, but, given that he's the interim chairman of CBS (NYSE:CBS) and a former president of 20th Century Fox, it's not a stretch to assume at least one of its game franchises could be adapted into a story suitable for a movie or television screen. A presence in the video world will help sell more video games, and vice versa. Whatever lies ahead, for Take-Two and TTWO stock owners, there's little doubt it's going to be fun for investors to watch unfurl. That is, after all, what the company is best at. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post Take-Two Interactive Stock Is Still The Top Bet In Video Gaming appeared first on InvestorPlace.
A disappointing run for video game publisher Activision Blizzard (NASDAQ:ATVI) continues. Activision stock traded down 6% in after-hours trading Thursday after disclosing it was ending a partnership with Destiny developer Bungie. The decline interrupts a brief bounce in ATVI stock, which had gained 18% from December lows. Of course, those December lows represented a 45%-plus drop from early October levels. Valuation drove the decline. Investors shifted from pricing in years of impressive growth to pricing in only minimal profit increases. At the after-hours price, ATVI now trades at just 17x 2019 earnings-per-share estimates. Considering Thursday's news, those estimates may have to come down, however. So should the ATVI stock price. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * InvestorPlace Roundup: The Top Stocks (and the Worst) in the Stock Market Today I wrote in November that Activision stock, at $50, was trading where it belonged all along. Thursday's news seems to further prove that thesis -- and perhaps argues for more downside. The fact is that investors were wrong to price ATVI above $80 in October. This company simply can't drive the growth needed to support that type of valuation. ### ATVI Stock Returns to Reality Activision stock had gained in recent weeks, but the news had been mixed. Two executives had departed, with the CFO heading for Netflix (NASDAQ:NFLX) and another joining Square (NYSE:SQ). Thursday's news hardly assuages concerns on the management front. Activision's Destiny was developed through an alliance with privately held Bungie. In an 8-K filing with the SEC, Activision disclosed that it was transferring "full publishing rights and responsibilities" to Bungie as well. The move, as the company wrote, means Activision will not "recognize material revenue, operating income or operating loss" from the game in 2019. Essentially, Activision is giving away Destiny. To be fair, the game had struggled of late. Management admitted on the Q3 call that revenue was below expectations, with COO Coddy Johnson citing "community concerns" driving lower player engagement. But, clearly, neither investors nor analysts thought the game was worthless. Going forward, with Activision Blizzard expecting close to zero profits, that indeed will be the case. ### Activision's Growth Problems And so the question becomes: How, exactly, is Activision supposed to grow? Per the 10-K, roughly two-thirds of revenue comes from four franchises: Call of Duty, Candy Crush, World of Warcraft and Overwatch. The first three of those games, in particular, are mature, and largely done growing. WoW is in a multi-year decline. Overwatch revenue is down this year, according to the 10-Q. Hearthstone is down this year and the last. Source: Shutterstock There's a case that Activision is struggling with competition from Epic Games' Fortnite at the moment, as Dana Blankenhorn argued last month. But there's more going on than just a short-term, single-game problem. There's simply not a lot of growth in Activision Blizzard's portfolio. And so any investor expecting ATVI stock to return to a 20x-plus P/E multiple is likely to be disappointed. ### The ATVI Narrative Changes At this point, the narrative here already has shifted. Investors have gone from seeing massive opportunity in esports to pricing in stagnant growth. The narrative has to shift back for ATVI to rally. I'm skeptical that's going to happen. Esports is a real opportunity, but this still is a company valued at $39 billion. Those efforts alone aren't driving upside. So the question remains: Where does the growth come from? New games could help. At this point, though, can investors trust Activision or Blizzard to develop those new games? Meanwhile, peer stocks have fallen as well. Both Take-Two (NASDAQ:TTWO) and Electronic Arts (NASDAQ:EA) similarly rely on legacy games. But neither company has multiple declining games, as Activision does. And at cheaper multiples, both stocks look more attractive. All hope isn't lost for Activision. But ATVI's current portfolio -- and management -- isn't cutting it. Activision literally just gave away a popular franchise that's been entrenched in gamer's minds for half a decade. That's something investors aren't going to forget for a long time. As of this writing, Vince Martin has no positions in any securities mentioned. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy That Are Run By Billionaires * 5 Retail Stocks Suffering Major Markdowns * 3 Defensive ETFs to Protect Yourself From Another Market Selloff Compare Brokers The post Activision Loses 'Destiny' -- And That's a Huge Problem for ATVI Stock appeared first on InvestorPlace.
# Take-Two Interactive Software Inc ### NASDAQ/NGS:TTWO View full report here! ## Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low * Economic output in this company's sector is expanding ## Bearish sentiment Short interest | Positive Short interest is low for TTWO with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. ## Money flow ETF/Index ownership | Positive ETF activity is positive. Over the last month, ETFs holding TTWO are favorable, with net inflows of $18.30 billion. Additionally, the rate of inflows is increasing. ## Economic sentiment PMI by IHS Markit | Positive According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. ## Credit worthiness Credit default swap CDS data is not available for this security. Please send all inquiries related to the report to firstname.lastname@example.org. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
# Take-Two Interactive Software Inc ### NASDAQ/NGS:TTWO View full report here! ## Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low ## Bearish sentiment Short interest | Positive Short interest is low for TTWO with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. ## Money flow ETF/Index ownership | Positive ETF activity is positive. Over the last month, ETFs holding TTWO are favorable, with net inflows of $18.30 billion. Additionally, the rate of inflows is increasing. ## Economic sentiment PMI by IHS Markit | Neutral According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. ## Credit worthiness Credit default swap CDS data is not available for this security. Please send all inquiries related to the report to email@example.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Take-Two Interactive Software, Inc. today announced that it plans to report financial results for the third quarter of its fiscal year 2019, ended December 31, 2018, before the market opens on Wednesday, February 6, 2019.
Investing.com - Investors pushed up video game stocks midday following a report that a takeover deal could be coming soon for retailer GameStop (NYSE:GME).
First things first: Strauss Zelnick is neither a gamer nor a designer of the imaginative video games that put the company he leads, Take-Two Interactive[ticker symb=TTWO], on the forefront of digital entertainment. He insists as much. What's more, he is neither an entertainer nor a creative type of any kind. "I know what I'm not good at," he said in...