Tuesday's Market Minute: Gaming In The Pandemic

Activision Blizzard, Inc. ATVI reports earnings after the bell today, with Zacks estimating EPS of $0.68 and a revenue of $1.69 Billion, compared to $1.21 Billion a year ago. Video game companies may expect to see a boost from stay-at-home orders; Take-Two Interactive, reporting last night, saw 1Q bookings double to $996.2 Million. Though it missed estimates on the top and bottom line, the stock is up in premarket trading.

A potential positive catalyst for Activision Blizzard this quarter is that many of their games have to be played online, like Overwatch or Call of Duty, opening up possibilities for loot boxes and other microtransactions, a recurring revenue stream—and with high unemployment, consumers might find small transactions preferable to investing in an entirely new game, which can often cost around $60. With Walt Disney, another massive entertainment company, also reporting after the bell today, investors will continue to get a better view of how people are spending their time at home. Tune into TD Ameritrade Network for a breakdown of the biggest earnings and more.

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