Two technology companies surprised Wall Street this week with better-than-expected quarterly results that drove their soaring stocks even higher.
Take-Two Interactive Software Inc. (NASDAQ: TTWO) says its video game “Grand Theft Auto” has been so successful that the company has canceled plans to discontinue it. The game’s success is likely due in part to the fact that it routinely provides new content to players.
The videogame developer reported fiscal first quarter earnings of 41 cents per share, more than double the Street view for 20 cents per share. It reported a loss in the same quarter last year. Revenue was $348 million, up from $273 million in the same quarter a year prior.
“Four years after its initial release, we’re immensely gratified that ‘Grand Theft Auto V’ continues to sell — sold more than 80 million units,” Take-Two CEO Strauss Zelnick said in a conference call.
Take-Two stock is up 121.7 percent the past year, including a rally of more than 12 percent this week. Take-Two shares are up 80 percent so far in 2017.
Meanwhile, Tesla Inc. (NASDAQ: TSLA), which is motivating investors with its launch of its more affordable Model 3 on July 28, also yielded impressive second quarter results.
Tesla reported a loss of $1.33 per share, which was smaller than $1.88-per-share loss the Street expected. Revenue was $2.79 billion, firmly above the analyst forecast for $2.51 billion.
Tesla attributes much of its success recently to Model 3’s debut, which it called “an impressive milestone” for the company as it noted it was developing numerous other new products, like solar panels for vehicle roofs. Tesla plans to achieve a production rate of 500,000 vehicles per year by next year.
Tesla shares are up 62 percent year to date, including a 6.5 percent rally in Thursday’s session.
