Tuesday’s Headlines: Take-Two and Zynga Join Forces

Tuesday’s Headlines: Take-Two and Zynga Join Forces

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Coupa Software (COUP) +7.3%

Avalara (AVLR) +4.2%

Veeva Systems (VEEV) +3.6%

Cloudflare (NET) +3.5%

Atlassian (TEAM) +3.1%

Moving Down ⬇️

Take-Two Interactive (TTWO) -13.1%

Trip.com Group (TCOM) -7.2%

Huazhu Hotels Group (HTHT) -5.9%

Duluth Trading (DLTH) -4.2%

Nike (NKE) -4.2%

1. Take-Two Interactive (TTWO) has agreed to purchase all outstanding shares of game development company Zynga (ZNGA). The deal is valued at $12.7 billion and will encompass both cash and stock. News of the acquisition has seen Zynga’s share price soar by over 40%, while Take-Two’s price fell 13%. This move will be seen as an attempt to bolster Take-Two’s mobile gaming arm, with Zynga well known for publishing successful mobile offerings such as 'Farmville.' Zynga CEO Frank Gibeau stated that “combining Zynga’s expertise in mobile and next-generation platforms with Take-Two’s best-in-class capabilities and intellectual property will enable us to further advance our mission to connect the world through games.” Read more here.

2. Lululemon (LULU) stock dropped by 1.9% yesterday following news that the company was expecting fourth-quarter revenue to be at the lower end of its expected range. Consequences surrounding the Omicron variant of COVID-19 were blamed for these faltering numbers, with the virus directly impacting staff availability and store opening hours throughout the quarter. The Vancouver-based athletic apparel company certainly isn’t alone in dealing with these issues. Chief rival Nike (NKE) was also forced to reduce opening hours at stores where staff simply weren’t available. Despite these shortcomings, Lululemon CEO Calvin McDonald remained optimistic when stating that “we are closing out a strong 2021 in the coming weeks, and we’re pleased with how Lululemon has delivered over the course of the year.” Read more here.

3. Tesla (TSLA) has announced strong sales in China for the month of December. The auto manufacturer sold 70,847 China-made vehicles in what was its strongest month since manufacturing began in Shanghai in late 2019. These sales show an impressive increase of 34% on November’s figures and close to triple the number from the same month in 2020. Investors will be pleased to see Tesla’s continued success in China, where it is currently the only non-domestic brand in the top 10 for electric vehicle (EV) sales. Success in such a lucrative market could propel Tesla to further success in 2022, with the company undoubtedly eager to improve on the approximately 473,000 sales it made in China last year. Read more here.

Pádraig BolgerPádraig Bolger

Sign up for free to continue reading.