Take-Two's Big Mobile Warning

November 08, 2022

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Take-Two's Big Mobile Warning

It could be a dark time in the mobile gaming industry. Video game company Take-Two Interactive Software (Nasdaq: TTWO) reported negative earnings on Monday and shares dropped 16.49% in after-hours trading.

Financials: Take-Two reported a loss of $1.54 per share and revenue of $1.4 billion; both were below estimates.

Outlook: In addition to the financial losses in the most recent time period, Take-Two lowered its net bookings guidance in the range of $5.4 billion to $5.5 billion for fiscal 2023.

Headwinds: Take-Two blamed numerous problems, including the current macroeconomic backdrop and fluctuations in foreign exchange currency. But about 70% of that downward revision was attributed to lower expectations in Take-Two’s mobile business.

Big Picture: It’s a challenging marketplace for the mobile gaming industry. Electronic Arts (Nasdaq: EA) warned about mobile gaming during its earnings last week.

Final Thoughts: Take-Two’s warning about mobile gaming has scared investors away. It should probably serve as a warning for investors in other mobile gaming stocks.

Notables

Notable Earnings Today: Walt Disney (NYSE: DIS), Norwegian Cruise Line (NYSE: NCLH), Workhorse Group (Nasdaq: WKHS), Occidental Petroleum (NYSE: OXY), Party City (NYSE: PRTY), AMC Entertainment (NYSE: AMC), Vertex Energy (Nasdaq: VTNR), Upstart (Nasdaq: UPST), Builders FirstSource (NYSE: BLDR), Plug Power (Nasdaq: PLUG), Planet Fitness (NYSE: PLNT), Lucid Group (Nasdaq: LCID), SunPower (Nasdaq: SPWR), Novavax (Nasdaq: NVAX), DuPont (NYSE: DD), Affirm (Nasdaq: AFRM), Carlyle Group (Nasdaq: CG), Marathon Digital Holdings (Nasdaq: MARA), International Seaways (NYSE: INSW), Invitae (NYSE: NVTA), 3D Systems (NYSE: DDD), Akamai Technolgies (Nasdaq: AKAM), Allbirds (Nasdaq: BIRD), Blink Charging (Nasdaq: BLNK), Constellation Energy (Nasdaq: CEG), Coty (NYSE: COTY), Elanco Animal Health (NYSE: ELAN), Expeditors International (Nasdaq: EXPD), GlobalFoundries (Nasdaq: GFS), GoodRx (Nasdaq: GDRX), Grocery Outlet (Nasdaq: GO), GXO Logistics (NYSE: GXO), Hain Celestial (Nasdaq: HAIN), Halozyme Theraputics (Nasdaq: HALO), InterActiveCorp (Nasdaq: IAC), Lemonade (NYSE: LMND), Lordstown Motors (Nasdaq: RIDE), Lumentum (Nasdaq: LITE), Mannkind (Nasdaq: MKND), NeoGenomics (Nasdaq: NEO), News Corp. (Nasdaq: NWSA), Opko Health (Nasdaq: OPK), Spirit Realty Capital (NYSE: SRC), Sprouts Farmers Market (Nasdaq: SFM), Wynn Resorts (Nasdaq: WYNN).

Notable IPOs Today: Intensity Therapeutics, Inc. Common stock (Nasdaq: INTS).

Notable Equity Crowdfunding Campaigns Ending Today: NeuEsse (Netcapital), Jetoptera (StartEngine).

Notable Economic Events Today: EIA Short-Term Energy Outlook (12:00 p.m. ET).

Lyft’s Active Riders Problem

Photo by Austin Distel / Unsplash

While earnings for Lyft (Nasdaq: LYFT) were better than expected and its revenue hit an all-time high, shares dropped 14.21% in after-hours trading on Monday after the ride-sharing company posted disappointing financial earnings.

Ride Out: The growth in active riders was only 7.2%, and the total number was much lower than anticipated. As a result, the company’s revenue guidance for the current quarter missed expectations.

Final Thoughts: Has Lyft fallen further behind its competitor Uber (NYSE: UBER)?

Activision Anticipates Microsoft Transaction

Video game company Activision Blizzard (Nasdaq: ATVI) ticked up 0.45% in after-hours trading on Monday after reporting better-than-expected earnings and revenue.

Final Thoughts: Activision also gave an update about previously-announced plans for Microsoft (Nasdaq: MSFT) to acquire the company, saying that the deal will close by the end of June 2023.

Trends to Watch

Have a Nice Trip, See You Next Fall: Tripadvisor stock plummets after earnings miss (MarketWatch)

Healthy Acquisition: Walgreens Unit to Buy Summit Health (The Wall Street Journal)

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