After initially jumping in extended hours, shares of Activision Blizzard (NASDAQ:ATVI) are down more than 3%. The videogame publisher reported strong third quarter results. Net income increased to $148 million (13 cents per share), compared to $51 million (4 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter. The company also raised its forecast for the year, due to the strong demand in its new Call of Duty: Modern Warfare 3 videogame. Competitors to watch include: Microsoft (NASDAQ:MSFT), Electronic Arts (NASDAQ:ERTS), and Take-Two Interactive (NASDAQ:TTWO).
Shares of Yahoo (NASDAQ:YHOO), Microsoft (NASDAQ:MSFT), and AOL (NYSE:AOL) are all attracting attention after the closing bell. The three internet companies announced a new display advertising agreement aimed at using numerous technologies and scale to reach more users. Yahoo shares jumped nearly 3%, while AOL increased by 1.8%. Microsoft shares edged slightly lower.
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Take-Two Interactive (NASDAQ:TTWO) shares are declining nearly 3% in late hours. The company swung to a loss of $47.2 million (57 cents per share) for the fourth quarter, compared to net income of $3.3 million or (9 cents per share) last year. Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the first quarter of the next fiscal year is 15 cents per share, a drop from 27 cents. The average estimate for the fiscal year has reached a loss of 13 cents per share, down from a loss of 2 cents ninety days ago.
Shares of Adobe Systems (NASDAQ:ADBE) are plunging more than 8% after announcing 750 job cuts. The cuts will come mostly in North America and Europe as part of a restructuring of the company. The company expects to post about $87 million to $94 million in pre-tax restructuring charges. Competitors include: Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG).