Why King Digital Entertainment PLC's Shares Got Crushed Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Candy Crush got smashed today when its maker, King Digital Entertainment PLC (NYSE: KING  ) fell 13% after reporting earnings.

So what: Revenue in the first quarter nearly tripled, to $606.7 million, but was only slightly higher than $602 million last quarter, showing signs that Candy Crush's popularity is fading. Profit was up from $52.7 million a year ago, to $127.2 million, but was down from $159 million a quarter ago. 

Now what: When you come public with a single product that drives your results, the pressure is on to come up with your next product, especially in the fast-moving app business. King Digital and its investors are finding that out quickly, and I still wouldn't be buying the stock today. App and game success is fleeting, and just because you caught lightning in a bottle once doesn't mean you can do it again.

A better way to invest for the future
Instead of buying fleeting gaming stocks, the smartest investors make money by buying high-quality dividend stocks that simply crush their non-dividend paying counterparts during the long term. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2948180, ~/Articles/ArticleHandler.aspx, 10/30/2014 11:28:34 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement