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Facebook Stumbles Midday; Take-Two Takes a Surprise Tumble

Stock MarketsNov 08, 2018 12:02PM ET
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© Reuters. Facebook is reportedly facing a European tax probe.

Investing.com - Facebook (NASDAQ:FB) fell in midday trading as it is reportedly set to face more regulatory scrutiny in Europe, while videogame stocks slid despite a solid earnings report from Take-Two Interactive .

Facebook fell about 2.4% at 12:00 PM ET (17:00 GMT).

EU Competition Chief Margrethe Vestager is considering whether to probe the social networking company’s European tax arrangements, Politico reported, citing two people close to the case.

Vestager has already seized documents relating to Facebook’s Irish tax deals, a former Irish civil servant told Politico.

It’s not surprising the stock is taking a breather as investors took some profits following yesterday’s rally and waited for the Fed decision this afternoon.

But a surprising move came in videogame stocks, where Take-Two Interactive (NASDAQ:TTWO) fell about 4.0% despite posting a strong profit and boosting guidance.

“As a result of our strong second quarter performance and outstanding early results from Red Dead Redemption 2, we are raising our financial outlook for fiscal 2019, which is also poised to be a record year for Net Bookings and Adjusted Operating Cash Flow,” the company said in its earnings release.

One reason for the selloff may be that despite the strong earnings, sales were well short of expectations.

Another could be the company being a victim of its own success, as there were concerns the “Red Dead Redemption” franchise could draw gamer attention and dollars away from the “Grand Theft Auto” franchise.

“We do not see any cannibalization, nor do I expect any,” Take-Two Chief Executive Strauss Zelnick said on the earnings call, The Wall Street Journal reported.

Facebook Stumbles Midday; Take-Two Takes a Surprise Tumble
 

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Anthony Anthony
Anthony Anthony Nov 09, 2018 1:00AM ET
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expect this to dip further before turning around. aim for $140 b4 end of 2018.
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jp de villiers
jp de villiers Nov 08, 2018 1:31PM ET
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Yes
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Duane Lee
Duane Lee Nov 08, 2018 1:25PM ET
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I'd buy the dip. they are about to make a fortune in microtransactions for red dead online
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Mihail Rusu
Mihail Rusu Nov 08, 2018 12:39PM ET
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It is quite good keeping in mind that the stock fell off a bit, so people can buy their shares.
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jun choi
jun choi Nov 08, 2018 12:26PM ET
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what is this mean with the stock?? is it goong to be up or down...
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