Posts Tagged ‘ATVI’
My latest post on Seeking Alpha is commentary on the current state of the video games business after seeing the carnage in GME’s stock when they issued earnings this week.
GameStop is struggling with the transition to new consoles, new digital distribution and new sales competition from Amazon and others. They may have some solid years as sales of next generation consoles ramp but I expect digital to be the greatest long term existential threat. Nintendo is at risk of becoming irrelevant in the console business. Video Game publishers should perform very well as the next generation ramps up, but may have some sales challenges in the meantime.
Read the whole thing: GameStop Tanks
Last Thursday, Seeking Alpha published my bullish post on a recent stock position – Take-Two Interactive.
Summary: Take-Two (TTWO) is a changed company with growing operating leverage and a secular tailwind from new console launches. Grand Theft Auto V is one of the biggest franchises in all of entertainment. Take-Two continues to innovate, win awards and launch new franchises. The company is flush with cash and cash flow and is aggressively buying back stock. The stock is inexpensive and could easily double in 6-12 months as the market digests the shift in business prospects and profitability.
You can read the full post on Seeking Alpha:
Disclosure: I own shares and call options in TTWO.