CNBC’s Jim Cramer said Tuesday that Activision Blizzard has a short-term advantage over rival Take-Two Interactive.
Both video game companies announced earnings this week.
activision blizzard
shares of activision blizzard It rose about 5.6% on Tuesday after the company reported outperforming sales in the most recent quarter. Cramer said all eyes were on the Federal Trade Commission’s antitrust lawsuit. microsofttried to buy a video game publisher, but he doesn’t think Activision Blizzard needs it to sustain its performance.
“I think Activision Blizzard is on fire here, and I hope the Microsoft merger collapses as soon as possible to give us a better buying opportunity,” he said.
take 2
shares of take-two interactive It rose about 7.9% on Tuesday and recovered after missing quarterly earnings on Monday and falling. Cramer said the company’s warnings about changes in consumer behavior due to challenging macroeconomic conditions are concerning.
But he predicted that the company behind the Grand Theft Auto and Red Dead Redemption series would release another blockbuster game that would eventually lead to a comeback.
“You have to believe in an upturn to get this. It may be a little early after this big move,” he said.
Disclaimer: Cramer’s Charitable Trust owns shares of Microsoft.