Activision vs Take-Two Earnings

Although lockdowns are long lifted, gamers are still going strong. Activision Blizzard ATVI is trading higher in the premarket after its 4Q earnings beat estimates on the top and bottom line. Bookings hit a new quarterly record at $3.57 billion, up 43% year-over-year. The company said it ended the quarter with 389 million monthly active users. Mobile and console gaming both saw a boost from Activision’s Call of Duty franchise, while Blizzard’s World of Warcraft and King’s Candy Crush also saw gains.

Despite this, Activision’s acquisition by Microsoft MSFT at $95/share is in hot water. Microsoft reportedly expects the deal to be blocked in the U.K.

On the other hand, Take-Two Interactive TTWO is slightly lower premarket, with several analysts slashing their price targets on the stock. Take-Two reported a loss per share for the quarter and lowered its forward guidance. The company also announced it was cutting costs, including personnel, seeking $50 million in annual savings. Take-Two’s CEO remarked that the environment is “more challenging than we anticipated.” The company does not have any major games scheduled for its 2023 fiscal year (which ends in March), although some analysts expect the next Grand Theft Auto installment to be out in its 2024 fiscal year.

Overall, it seems like the market for games is still strong—especially in franchises—but delayed releases and a lack of consumer excitement hits hard

Image sourced from Shutterstock

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsMarketsActivision BlizzardTD Ameritrade
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!