Video game

Videogame stocks break slump; help out communication services – Seeking Alpha

Breadth is weak and the overall market is weakening as the afternoon progresses, but the Communications Services sector (XLC+0.4%) is just hanging onto gains, having led most of the day.

Among the top performers are the video game stocks, which have been the weakest in the sector for the past five sessions.

Take-Two (TTW0, +1.6%) was down 4.5% in the last five trading days. Electronic Arts (EA+0.9%) had fallen 4.3% and Activision Blizzard (ATVI+0.1%) had dropped 3.1%.

The stocks had likely fallen into some profit taking after strong run fueled by surging demand for gaming during lockdown measures. Video game spending hit a Q2 record.

Take-Two is up 50% in the last six months, while Activision and EA are up about 30%.

But investors are dipping their toes back in as the prospects of the sector still look very strong heading into the end of the year. New Xbox and PlayStation consoles will be released for the holidays.


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