This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

King Digital Entertainment in Worse Shape Than Earnings Suggest

Cash at King Digital rose more than four-fold to $832 million, allowing the company to pay a special dividend of $150 million. Some bargain-hunting investors on Wall Street think King Digital will be able to move beyond Candy Crush and turn itself around. However, trends are presently worsening.

Analysts, who have pumped King Digital since its IPO, are also just beginning to cut their estimates. TheStreet was decidedly skeptical of the sell-side’s bullishness on King Digital when analysts began initiating coverage in May.

Bottom Line: At a market capitalization of about $4.5 billion, King Digital remains a risky bet in spite of its significant profits, cash generation and dividend payments.

Read More: Analysts Still Courting King Digital After Candy Crush Peaks

Read More: Is King Digital's IPO Too Good to Be True 

-- Written by Antoine Gara in New York

Follow @AntoineGara

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
KING $16.76 -1.47%
AAPL $130.28 0.47%
FB $81.53 -1.07%
GOOG $565.06 3.30%
TSLA $218.42 -0.08%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs