Activision Blizzard is a purchase, however watch for Take-Two Interactive
CNBC’s Jim Cramer said Tuesday that Activision Blizzard is in a better position than rival Take-Two Interactive in the short term.
Both video game companies reported earnings this week.
shares of Activision Blizzard rose about 5.6% on Tuesday after the company reported a drop in sales last quarter. Cramer said while all eyes are on the Federal Trade Commission’s antitrust case MicrosoftAfter Activision Blizzard’s attempt to acquire the video game publisher, he believes Activision Blizzard doesn’t need the acquisition to continue doing well.
“I think Activision Blizzard is burning right here. I almost hope that the Microsoft merger falls apart as soon as possible so that you have a better buying opportunity,” he said.
shares of Take Two Interactive Soared about 7.9% on Tuesday, making a comeback after falling Monday on a quarterly sales slump. Cramer noted that the company’s warning of changing consumer behavior due to difficult macroeconomic conditions is worrying.
But he predicted that the company that produces the Grand Theft Auto and Red Dead Redemption series will eventually release another smash hit that will lead to a comeback.
“You have to believe in a reversal to own this one. It might be a bit early after this big run,” he said.
Disclaimer: Cramer’s Charitable Trust owns Microsoft stock.
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