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Videogame Stock Roundup: Pokemon Go Earns $200M, Microsoft Buys a Live Streaming Start Up
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Last week, media reports stated that Nintendo’s Pokémon Go has earned over $200 million in revenues in its first month of release. Microsoft (MSFT - Free Report) snapped up a live streaming start up to make it easier for Xbox users to live stream gaming sessions.
On the earnings front, we are almost at the end of the second quarter earnings cycle with just a few results awaited. Last week we had SINA Corp reporting its quarterly results.
A Recap of the Developments
1. SINA Corp reported second-quarter 2016 adjusted earnings of 6 cents per share, which was way better than the Zacks Consensus Estimate of a loss of 1 cent and loss of 19 cents reported in the year-ago quarter. Net revenue of $244 million also topped the consensus mark of $230.4 million while growing 14.2% year over year. SINA also upgraded its revenue outlook for the year. The company expects 2016 revenues to be in the range of $950 million to $1 billion compared with the earlier projected range of $850 million to $950 million.
2. Nintendo’s super successful game Pokémon Go has attained a massive feat, earning over $200 million in cumulative revenues in the first month of release, as per media reports. Its release in Japan acted as a big catalyst. Reportedly, the game has also topped revenues earned by mobile titles like Candy Crush Soga Saga and Casino Royale.
Revenues will continue to grow as the company rolls out the app in other countries like South Korea and India. However, Nintendo had earlier noted that the success of Pokémon Go will have a “limited impact” on its financials as it “does not make the game”. Pokémon Go was developed by Niantic in association with The Pokémon Company, owned by Nintendo.
3. Microsoft has acquired Beam Interactive that specializes in live-streaming technology for gamers, for an undisclosed amount. The company has created a software development kit for coders that helps to modify existing computer games so that players can livestream their gaming sessions to friends. Though Beam Interactive launched the software in May for the public, it is a beta version implying that the company is still developing the software.
Performance
The following table shows the price movement of the major video game companies over both the past five trading days as well as the last six months:
Company
Last 5 Days
Last 6 Months
ATVI
2.86%
35.35%
EA
2.00%
33.79%
GLUU
-7.26%
-33.64%
MSFT
2.86%
17.33%
NTES
-1.95%
46.36%
TTWO
3.14%
18.16%
ZNGA
-7.06%
46.96%
Over the last five trading sessions, Glu Mobile was down 7.26% while take Two Interactive (TTWO - Free Report) was up 3.14%.
Over the last 6-month period, Zynga surged the most — nearly 46.96%. Zynga has been benefiting from the strength in the mobile game market. In addition, its cost cutting initiatives and its ongoing share repurchase program are also positives. The company also posted better-than-expected first quarter 2016 results. However, the company downgraded its outlook for the rest of the year.
Glu Mobile was down 33.64% over the same time frame due to underperformance of most of its releases. Also, the company downgraded its outlook for 2016. But its significant share repurchase authorization and the much anticipated Taylor Swift game keep hopes alive.
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Videogame Stock Roundup: Pokemon Go Earns $200M, Microsoft Buys a Live Streaming Start Up
Last week, media reports stated that Nintendo’s Pokémon Go has earned over $200 million in revenues in its first month of release. Microsoft (MSFT - Free Report) snapped up a live streaming start up to make it easier for Xbox users to live stream gaming sessions.
On the earnings front, we are almost at the end of the second quarter earnings cycle with just a few results awaited. Last week we had SINA Corp reporting its quarterly results.
A Recap of the Developments
1. SINA Corp reported second-quarter 2016 adjusted earnings of 6 cents per share, which was way better than the Zacks Consensus Estimate of a loss of 1 cent and loss of 19 cents reported in the year-ago quarter. Net revenue of $244 million also topped the consensus mark of $230.4 million while growing 14.2% year over year. SINA also upgraded its revenue outlook for the year. The company expects 2016 revenues to be in the range of $950 million to $1 billion compared with the earlier projected range of $850 million to $950 million.
2. Nintendo’s super successful game Pokémon Go has attained a massive feat, earning over $200 million in cumulative revenues in the first month of release, as per media reports. Its release in Japan acted as a big catalyst. Reportedly, the game has also topped revenues earned by mobile titles like Candy Crush Soga Saga and Casino Royale.
Revenues will continue to grow as the company rolls out the app in other countries like South Korea and India. However, Nintendo had earlier noted that the success of Pokémon Go will have a “limited impact” on its financials as it “does not make the game”. Pokémon Go was developed by Niantic in association with The Pokémon Company, owned by Nintendo.
3. Microsoft has acquired Beam Interactive that specializes in live-streaming technology for gamers, for an undisclosed amount. The company has created a software development kit for coders that helps to modify existing computer games so that players can livestream their gaming sessions to friends. Though Beam Interactive launched the software in May for the public, it is a beta version implying that the company is still developing the software.
Performance
The following table shows the price movement of the major video game companies over both the past five trading days as well as the last six months:
Company
Last 5 Days
Last 6 Months
ATVI
2.86%
35.35%
EA
2.00%
33.79%
GLUU
-7.26%
-33.64%
MSFT
2.86%
17.33%
NTES
-1.95%
46.36%
TTWO
3.14%
18.16%
ZNGA
-7.06%
46.96%
Over the last five trading sessions, Glu Mobile was down 7.26% while take Two Interactive (TTWO - Free Report) was up 3.14%.
Over the last 6-month period, Zynga surged the most — nearly 46.96%. Zynga has been benefiting from the strength in the mobile game market. In addition, its cost cutting initiatives and its ongoing share repurchase program are also positives. The company also posted better-than-expected first quarter 2016 results. However, the company downgraded its outlook for the rest of the year.
Glu Mobile was down 33.64% over the same time frame due to underperformance of most of its releases. Also, the company downgraded its outlook for 2016. But its significant share repurchase authorization and the much anticipated Taylor Swift game keep hopes alive.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>