King Digital Surrenders After Monster Rally
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
King Digital Entertainment PLC (NYSE: KING), the maker of the Candy Crush video game, is trading higher by over 13 percent on Friday. The catalyst for the rally is an earnings beat ($0.57 vs. $0.47) with better than expected revenues ($559.2M vs. $519M). Also, the company announced a special dividend of $0.94 and the acquisition of Z2Live.
After-hours and pre-market traders got a bit carried away with the issue, taking it to $18.25 before finding resistance. That is the first time the issue has been over $18.00 since August 12, when it peaked at $18.03.
The following day, it lost over $4.00 after a disappointing earnings report.
Profit-takers have come in during the regular session on Friday, as the issue has been selling off since the opening bell. After peaking at $18.00 shortly after the open, it has declined to $16.60 thus far.
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