Videogame Stock Roundup: Nintendo's Pokemon Sun & Moon Shatter Records, ATVI CEO Gets New Compensation Deal
Zacks Investment Research | Dec 01, 2016 09:58PM ET
Japanese video game giant, Nintendo Co (T:7974) Ltd (OTC:NTDOY) has had a good year so far. After Pokémon Go’s super success, its latest games, Pokémon Sun and Moon have become the “fastest selling games” ever in the Americas. This bodes well especially as we approach the holiday season. Plus, fans across the globe can now enjoy Nintendo games inspired theme areas at four Universal Studios locations. Meanwhile, Activision Blizzard (NASDAQ:ATVI) chalked out an impressive package for CEO Bobby Kotick, which could reportedly make him one of the “highest paid CEOs” in the U.S.
Recap of the Developments
1. In a press release a couple of days back, Computer and Technology Sector Price Index
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 | -7.32% | -7.94% |
EA | -4.32% | -1.36% |
GLUU | -1.82% | -8.47% |
MSFT | -1.91% | 12.02% |
NTES | -5.63% | 23.65% |
TTWO | -0.86% | 22.68% |
ZNGA | 2.50% | 8.71% |
Over the last five trading sessions, Activision was down 7.32% while Zynga Inc (NASDAQ:ZNGA) was up 2.50%.
Over the last six-month period, NetEase (NASDAQ:NTES) surged the most (23.65%). Recently, NetEase reported solid third-quarter 2016 results. The increasing popularity of mobile-based games and the strength of PC games (licensed & self-developed) continue to keep investors interested in the stock. Moreover, higher mobile advertising revenues were an added incentive. NetEase has announced a new $1 billion buyback program for its ADRs over a one-year time frame. The development comes close on the heels of NetEase launching its first VR game, Twilight Pioneers on Google’s VR platform, Daydream.
Glu Mobile (NASDAQ:GLUU) was down 8.47% over the same time frame due to the underperformance of most of its releases. Its weak third-quarter results were somehow overshadowed by the announcement of a new CEO and acquisition of a majority stake in CrowdStar.
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