Investing.com - Investors were looking for the reset button as videogame stocks slumped in midday trade Wednesday after two of the top players reported disappointing numbers.
Electronic Arts (NASDAQ:EA) slumped 12% after its results numbers came in lower than expected, while Take-Two (NASDAQ:TTWO) shares sank 10% after its forecasts fell short of estimates.
Electronic Arts cited “intense competition” for its revenue miss for the fiscal third quarter.
Meanwhile, Take-Two said revenue in the quarter ending in March will be $450 million to $500 million, well below the $601 million anticipated by analysts polled by Refinitiv.
The weak numbers also weighed on Activision Blizzard (NASDAQ:ATVI), which fell 8.5%, while Zynga Inc (NASDAQ:ZNGA) slipped 4% ahead of its earnings report after the close.
The Communication Services Select Sector ETF (NYSE:XLC) lost 1.8%.