TAKE TWO, INC (TTWO)

EARNINGS RELEASE MONDAY - MAY 13 (AMC)

JUMP BACK

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

23 Jan, 2021 @ 13:51 by Yahoo! Finance

My bad parenting is about to get its own stock listing. Technically, that’s for a company called Roblox, but it’s more or less the same thing. Then the pandemic shut down in-person activities and turned my home into a daytime turf war between the Zoom School Gang and the Department of Home Office Security.

Take-Two Interactive Software shows improving price performance, earning an upgrade to its IBD Relative Strength Rating.

The party’s over, says analyst Eric Sheridan, ahead of the coming deluge of December-quarter earnings reports for internet and gaming stocks. What to buy instead.

19 Jan, 2021 @ 12:16 by Yahoo! Finance

In a note on U.S. internet and interactive entertainment stocks, UBS downgraded Peloton Interactive , Fiverr International and Chewy to sell from neutral. Analysts led by Eric Sheridan said the three stocks are “emblematic of a market that values growth over any semblance of valuation that can be justified on a multiple year view based on our fundamental analysis.” Take-Two Interactive Software was downgraded to neutral from buy.

Video game spending in December and full-year 2020 reached record levels in the U.S. as consumers spent more time with home entertainment during the Covid-19 pandemic, NPD Group said Friday.

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.