Here’s Why Video Game Stocks are Getting Drop Kicked Now

Vivendi Sa ADR (VIVHY.PK) sold 35 million shares of Activision Blizzard, Inc. (NASDAQ:ATVI), reducing its stake by almost three percent to 60 percent. The sale generated $426 million in proceeds, according to a Reuters’ estimate.

A corporate spokesperson said the trade had been executed as “a tactical disposal with regards to our overall capital structure,” and that the company is still “committed to Activision and to being the main shareholder.”

The sale took almost four days to execute and from the pressure of the increased supply of stock hitting the market,  ATVI shares dropped along with other video games stocks including THQ, Inc. (NASDAQ:THQI), Electronic Arts Inc. (NASDAQ:ERTS), Take-Two Interactive Software, Inc. (NASDAQ:TTWO) and GameStop Corp. (NYSE:GME).

  • Activision Blizzard, Inc. (NASDAQ:ATVI): The shares recently traded at $12.26, down $0.54, or 4.22%. Its market capitalization is $14.02 billion. They have traded in a 52-week range of $10.40 to $14.40. Volume today was 28,281,073 shares versus a 3-month average volume of 9,173,730 shares. The company’s trailing P/E is 19.55, while trailing earnings are $0.63 per share. The company pays a dividend of $0.17 per share for a dividend yield of 1.30%. About the company: Activision Blizzard, Inc. publishes, develops, and distributes interactive entertainment software and peripheral products. The Company’s products cover diverse game categories, including action/adventure, action sports, racing, role playing, simulation, first-person action, music-based gaming and strategy. Get the most recent company news and stock data here >>
  • Electronic Arts Inc. (NASDAQ:ERTS): The shares recently traded at $23.82, up $0.07, or 0.29%. Its market capitalization is $7.89 billion. They have traded in a 52-week range of $14.67 to $26.13. Volume today was 2,825,325 shares versus a 3-month average volume of 8,088,710 shares. The company’s trailing earnings are $-0.88 per share. About the company: Electronic Arts Inc. develops, publishes, and distributes branded interactive entertainment software worldwide for video game consoles, personal computers, handheld game players, and cellular handsets. The Company also provides online game-related services. Get the most recent company news and stock data here >>
  • Take-Two Interactive Software Inc. (NASDAQ:TTWO): The shares recently traded at $14.36, down $0.12, or 0.83%. Its market capitalization is $1.24 billion. They have traded in a 52-week range of $10.62 to $17.58. Volume today was 4,273,081 shares versus a 3-month average volume of 1,883,540 shares. The company’s trailing earnings are $-0.47 per share. About the company: Take-Two Interactive Software, Inc. develops, markets, distributes, and publishes interactive entertainment software games and accessories. The Company’s products are for the personal computer, PlayStation game console, PlayStation 2 computer entertainment system, Xbox, Nintendo GameCube, and Nintendo Game Boy Advance. Take-Two operates offices worldwide. Get the most recent company news and stock data here >>
  • GameStop Corp. (NYSE:GME): The shares recently traded at $23.91, down $0.73, or 2.96%. Its market capitalization is $3.33 billion. They have traded in a 52-week range of $18.34 to $28.66. Volume today was 4,171,058 shares versus a 3-month average volume of 3,714,470 shares. The company’s trailing P/E is 8.73, while trailing earnings are $2.74 per share. About the company: GameStop Corporation operates specialty electronic game and PC entertainment software stores throughout the United States, Australia, Canada and Europe. The Company stores sell new and used video game hardware, video game software and accessories, as well as PC entertainment software, and related accessories and other merchandise. Get the most recent company news and stock data here >>

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