A surface-to-air missile shot down a U.S. military drone over the Strait of Hormuz, a U.S. official said Thursday.World Politicsread more
President Donald Trump has publicly blamed the Federal Reserve's interest rates hikes for holding back U.S. economic growth.The Fedread more
China's President Xi Jinping arrived in Pyongyang on Thursday morning for a state visit to North Korea — the first by a Chinese state leader in 14 years. Experts say the move...Asia Politicsread more
Gold prices spiked in the afternoon of Asian trading hours on Thursday after a dovish U.S Federal Reserve opened the door to further rate cuts, and the 10-year Treasury yield...Metalsread more
The Fed came very close to promising a rate cut Wednesday, and now markets are focused on a possible July rate cut.Market Insiderread more
Waymo has signed a deal with Renault and Nissan to develop self-driving cars and trucks for use in France, Japan and possibly other countries in Asia, including China, the...Autosread more
It's crucial to note that the culprit behind attacks on two commercial tankers last week has not been conclusively proven.World Politicsread more
"No U.S. drone was operating in Iranian airspace today," a U.S. Central Command spokesman said, according to NBC News.World Politicsread more
The Fed left interest rates unchanged at its monetary policy meeting. The U.S. central bank did, however, drop the word "patient " from its statement and said it would "act as...Asia Marketsread more
As the presidents of U.S. and China near a highly anticipated meeting on trade, the gap in both sides' expectations regarding a deal remains wide.World Politicsread more
Markets had expected the central bank to keep its benchmark interest rate steady while setting up a cut at the July meeting.The Fedread more
Activision Blizzard reported mixed fourth-quarter results Tuesday and offered weak guidance for the first half of 2019. Shares fell as much as 5 percent in extended trading before gaining as much as 4 percent.
Activision Blizzard has revealed headwinds in recent weeks, and said Tuesday it plans to cut its global workforce by 8 percent.
"Our restructuring plan sheds investment and less productive nonstrategic areas to our business and will result in a net headcount reduction of approximately 8 percent while also driving a significant increase in investment focus and capabilities around our biggest franchises," Coddy Johnson, Activision's operating chief, said on the company's earnings call. "We're confident that over time this plan will enable our teams to accelerate the delivery of high-quality content to our communities."
Here's how the company did during the fourth quarter compared with what Wall Street was expecting:
Activision Blizzard expects first-quarter earnings per share of 20 cents— less than half of what Wall Street was looking for — on revenue of $1.18 billion. Refinitiv consensus estimates projected EPS of 46 cents on revenue of $1.45 billion for Q1 2019.
The company expects full-year 2019 earnings of $2.10 per share on $6.30 billion in revenue, compared with analyst estimates of earnings of $2.54 per share on $7.25 billion in revenue, according to Refinitiv.
The company's net bookings are expected to drop in 2019 to $6.30 billion, down from $7.26 billion during 2018 and $7.16 billion during 2017.
"In-game execution was inadequate in some of our franchises, and we saw weaker-than-anticipated retail demand," Johnson said on the call. "Our 2019 outlook assumes that we will not improve in-game monetization as quickly as we would like and that it is a transition year where we have less new major content to release than we should."
The company publishes popular game titles like "Call of Duty," "Diablo" and "Warcraft," and last month split from game studio Bungie, relinquishing rights to the "Destiny" game franchise. Each of those franchises will see increased investment over the next year, Johnson said.
The gaming industry is feeling increasing pressure from free-to-play competitor "Fortnite." Last week, Electronic Arts and Take-Two Interactive lost 13 percent and 14 percent respectively in a single day after revealing increased competition.
Shares of Activision have lost nearly 50 percent of their value since hitting a 52-week intraday high of $84.68 in October. The stock surged 4 percent Tuesday ahead of the earnings report.
The company has also seen a series of high-profile executive shakeups in recent months. Its former chief financial officer, Spencer Neumann, was hired as CFO at Netflix.
—CNBC's Eustance Huang contributed to this report.
Correction: An earlier version of this story mistakenly quoted Activision CEO Bobby Kotick instead of COO Coddy Johnson.