Tuesday’s Headlines: Take-Two Smashes Earnings
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Square (SQ) +10.2%
Duluth Trading (DLTH) +8.7%
Nordstrom (JWN) +3.6%
PagerDuty (PD) +3.4%
Tesla Motors (TSLA) +3.3%
Moving Down ⬇️
iRobot (IRBT) -3.1%
Pinterest (PINS) -3.0%
Mastercard (MA) -2.8%
GoPro (GPRO) -2.3%
1. It was a good quarter for gaming as Take-Two Interactive (TTWO) smashed analyst expectations. The company reported earnings of $1.30 per share v.s. expectations of $0.89 per share, while revenues came in at $813 million compared to Wall Street expectations of $688.97 million. Due to 2020’s outsized pandemic impact, revenue did still come in 2% lower YoY, but this was expected, while recurrent consumer spending accounted for 70% of total revenue during the quarter, with the largest contributors being ‘NBA 2K21’, ‘NBA 2K20’, ‘GTA 5’, and ‘GTA Online’. “We remain highly optimistic about the growth potential for the interactive entertainment industry and our competitive positioning within the sector,” said CEO Strauss Zelnick. Read the official press release here.
2. Much like Apple’s (AAPL) move away from third-party processor chips, Google (GOOG) has announced that it will build its own smartphone processor for its new Pixel 6 and Pixel 6 Pro phones this fall. The unfortunate victim of this move is Qualcomm (QCOM), which will be dropped for Google’s new, so-called ‘Tensor’ processors. These new phones will reportedly bring Google out of the affordable smartphone market and into the high-end range, proving that the tech giant is once more trying to compete directly in the flagship space against Apple and Samsung. More information is expected closer to the Pixel 6 launch in October; for now, read more here.
3. We haven’t left Zoom-bombing behind us, apparently, with the popular teleconferencing software finally settling its privacy-related lawsuit for a cool $85 million. For those who don’t remember, back in March 2020, Zoom (ZM) was plagued with complaints of ‘Zoom-bombing’, where malicious users quickly found out how easy it was to gain access to a Zoom meeting simply by finding or figuring out the private URL for a session. This raised significant security concerns, which have since been resolved, allegedly, but the shadow of this oversight will weigh heavily on the company as it forks out such a steep fine, hoping that it can prevent further breaches. Read the full story here.
Some more earnings from last night:
Arista Networks (ANET)
The California-based cloud networking firm topped Wall Street estimates with a second-quarter profit of $196.9 million, or $2.72 per share, on revenue of $707.3 million. Much of the kudos for this quarterly performance were given to the company’s increasingly innovative cloud networking products as well as the fact that it surpassed 50 million cloud network ports shipped cumulatively in June. Read more here.
There are 3 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.