Jump Report
| Avg Daily Volume: 2,867,524 Market Cap: 10.18B Sector: Technology Short Interest: 4.02 |
EARNINGS EXPECTATIONS:
CONSENSUS EPS: .76/share REV: 506.46/M
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LAST QTR: EPS: 2.90/share ESTIMATED: 2.80/share (BEAT)
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NEXT QTR: EPS: .42/share REV: 418.3/M
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FY19: EPS: 4.78/share REV: 2,950/M
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*These are the base metrics we will be watching against the actual release numbers
BEAT/MISS HISTORY: 88% OF THE TIME THEY BEAT ESTIMATES
PRIOR ‘JUMP ZONE’ MOVES (3 QTRS %) : -14.72, -6.96, 15.16
POTENTIAL JUMP MOVE: 12-15%
Links To Latest News and Headlines
Today, 2K announced that Season 7 of WWE® SuperCard, the newest addition to the action-packed collectible card-battling game, is scheduled to launch in November 2020 as a free, downloadable update on the Apple App Store for iOS devices, including iPhone® and iPad®, as well as the Google Play Store and Amazon Appstore for Android™ devices* and Facebook Gaming. Featuring greater flexibility in play styles, increased strategic depth, three new card tiers, a huge roster of WWE Superstars, Legends and Hall of Famers, and new ways to earn cards and battle with players around the world, WWE SuperCard will continue raising the bar for competitive and engaging WWE action in a unique format.
With its next earnings report scheduled for Nov. 5, Take-Two Interactive Software is trading about 8% under a 180.71 buy point. Keep in mind that buying shares just before a company reports is risky, since disappointing numbers could send them sharply lower. Earnings-per-share growth for the New York, N.Y.-based game maker declined last quarter from 114% to 88%, but the top line rose from 41% to 54%.
Charter’s (CHTR) third-quarter results are expected to reflect strength in Internet and mobile subscriber base despite softness in advertising sales due to coronavirus outbreak.
Activision Blizzard reports after the market closes on Thursday, while Electronic Arts and Take-Two Interactive Software follow a week later.
Take-Two Interactive (NASDAQ: TTWO) and Ubisoft Entertainment (OTC: UBSFF) (OTC: UBSF.Y) have been two of the top-performing stocks among the top game producers for console and PC platforms. Over the last five years, Take-Two and Ubisoft’s share prices surged 414% and 240%, respectively, trouncing the returns of Activision Blizzard (NASDAQ: ATVI) and Electronic Arts (NASDAQ: EA). Here’s why Take-Two and Ubisoft could outperform again over the next five years.
Analysis and trade direction are uploaded generally between noon and 1pm EST for most events. ALWAYS check back near market close for updates as the analysis can change by end of session.
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ANALYSIS:
StockJumpers trajectory analysis reveals a drop in price post release on soft investor sentiment. Consensus has earnings at .76/share on bookings of 512 million. They may not meet that or if they do, we don’t see them beating by much. Though competitor EA which just reported a beat and the stock went up post release we are not seeing that here.
We are overall SHORT on the event.
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TRADE PLAN:
ENTRY: SELL
STOP LOSS: 5%
TAKE PROFIT: 9%
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UPDATE: We remain biased short on this trade. The stock is down almost 4% from open so the concern is the move may be priced in. Factor that in your decision to trade it.
POST RELEASE ACTION: Trading was halted prior to the release as they printed much lower expectations. The stock dropped 7% – and then back up to near close level. We grabbed a quick profit and are short again with a belief it will resume dropping in the am.
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NOTE: There is a significant amount of data behind the scenes in getting to the analysis in the tab above. Too much information for traders only confuses things – so this is striped down to only what it needed to make the best possible decision(s) on trading the trajectory.