Activision Blizzard is a buy, but wait Take-Two Interactive
CNBC’s Jim Cramer said Tuesday that Activision Blizzard is better positioned in the near term than rival Take-Two Interactive.
Both video game companies announced earnings this week.
Shares of ActivisionBlizzard rose about 5.6% on Tuesday after the company reported an increase in revenue in its latest quarter. Cramer said that while all eyes are on the Federal Trade Commission’s antitrust case against Microsoftto acquire the video game publisher, he believes that Activision Blizzard does not need the acquisition to continue to perform well.
“I think Activision Blizzard is on fire here. I’m almost hoping that the Microsoft merger will fall apart as soon as possible, so you have a better buying opportunity,” he said.
Shares of Interactive Take-Two rose about 7.9% on Tuesday, making a comeback after falling on Monday due to a quarterly shortfall. Cramer noted that the company’s warning about changing consumer behavior due to tough macroeconomic conditions was worrisome.
But he predicted that the company, which produces the Grand Theft Auto and Red Dead Redemption series, will eventually release another hit that will lead to a comeback.
“You have to believe in a turnaround to own this one. It might be a little early after this big run,” he said.
Disclaimer: Cramer’s Charitable Trust owns stock in Microsoft.