Shares of video game makers jumped Wednesday after earnings reports from pioneer Nintendo and relative newcomer Roblox (RBLX).
Nintendo shares trading in Tokyo surged 6.1%, their biggest one-day gain since December 2020, after it said it planned to make a big screen adaptation of its best-selling Legend of Zelda franchise.1
The company is looking to recreate the success it had earlier this year with the “Super Mario Bros. Movie,” which grossed nearly $1.4 billion, making it the second-biggest animated movie of all time.
The Mario movie and “The Legend of Zelda: Tears of the Kingdom,” the latest entry in Nintendo’s famed franchise, have boosted both game and console sales this year, leading the company to raise its full-year sales and profit outlook on Tuesday.2
Roblox (RBLX) shares jumped 17% in early trading Wednesday after it reported a 20% increase in bookings and a nearly 70% increase in net cash from operating activities.
Chief Financial Officer Michael Guthrie said the company was “now entering a new phase” of slower operating expense growth and growing free cash flow.3
And Take-Two Interactive (TTWO) shares surged more than 7% as rumors swirled that it will soon announce the much-anticipated sixth installment of its blockbuster Grand Theft Auto series. Take-Two reports earnings after the bell Wednesday.