Why Take-Two Interactive and IBM are Tumbling

Shares of Take-Two Interactive and IBM are falling on Wednesday, while Apple shares are on the rise.

May 14, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI) had fallen more than 55 points as of 11:30 a.m. EDT. IBM (NYSE:IBM) was one of the worst-performing stocks in the index, while Take-Two Interactive (NASDAQ:TTWO) shares likewise slumped and Apple (NASDAQ:AAPL) rose slightly.

PPI beats expectations
The Producer Price Index, or PPI, a measure of inflation in the supply chain, rose 0.6% on a month-over-month basis last month, according to U.S. Bureau of Labor Statistics. That was more than the 0.2% rise economists had anticipated.

A higher PPI indicates a greater degree of inflation in the U.S. economy -- the PPI is widely considered to be a leading indicator of the Consumer Price Index, the most significant measure of inflation in the nation's economy. While runaway inflation can be dangerous, higher prices suggests stronger economic activity.

Take-Two slumps on earnings
Take-Two shares fell 7.5% on Wednesday after the company posted earnings that appeared to disappoint investors. Take-Two is a major video game publisher, most known for its popular Grand Theft Auto franchise. The most recent entry in the series, Grand Theft Auto 5, has shipped 33 million units, making it one of the best-selling video games of all time.

But unlike other popular video game franchises, Take-Two doesn't release new Grand Theft Auto games on an annual basis. In the years between releases, investors may be concerned that the company will be unable to deliver. Take-Two's earnings were actually better than what analysts had expected, and its guidance was basically in line with projections, but the company provided little insight regarding its product pipeline.

IBM warns of slower Chinese growth
IBM CEO Ginni Rometty was speaking at the company's investor briefing on Wednesday. As she spoke, shares were lower by 1.1%.

Rometty admitted that IBM's growth in China had been slowed by hardware, and that its hardware profit would be flat in 2014 compared to the prior year. On a positive note, however, Rometty offered guidance for fiscal 2015, promising earnings of at least $20 per share -- analysts had been expecting just slightly less. 


Source: Wikimedia Commons.

Apple said to be planning iPhone launch in September
Apple shares were just above breakeven following reports that the company was likely to launch the next iPhone in September. A German website, iFun.de, reported that Apple retail workers in Germany had been told they would not be able to take time off during that month. Given the madness that generally accompanies new iPhone releases, ensuring stores are adequately staffed would be a top priority.

Apple generally releases the new iPhone in September, so this report is not altogether surprising. Still, there had been rumors that Apple was planning to push up the iPhone 6's release into August.

R.I.P. Internet -- 1969-2014

At only 45 years old... the Internet will be laid to rest in 2014. And Silicon Valley is thrilled. Because they know... The Economist believes the death of the Internet "will be transformative." In fact, the CEO of Cisco Systems -- one of the largest tech companies on the planet -- says somebody's going to bank "14.4 trillion in profit from one concept alone."

Click here for a FREE video that gives you what you need to capitalize on the little-known company behind this concept.

Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Apple and Take-Two Interactive. The Motley Fool owns shares of Apple and International Business Machines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers