Video Game Stocks Pop on Nintendo, Roblox News

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.