(Guitar Hero is a video game in which the controller is a guitar simulator and the "guitar" sells for $80 - $100.)
Jeff says he expects ATVI to steel market share from Electronic Arts (ERTS) because he thinks Guitar Hero represents the next generation of video games.
Todd Mitchell says the stock is trading on momentum not fundamentals. Mitchell agrees that it’s indicative of the type of game to come, but says the profit comes from gamers who have to buy the plastic guitar. He doesn’t see profits remaining strong, long term, based on that alone.
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Trader disclosure: On June 6 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:Macke Owns (SWY), (ATVI), Najarian Owns (AAPL), (AMTD), (ERTS), (FMD), (NVDA), (NFI), (PGR); (.VIX), (BIIB), Bolling Owns (NMX), Gold, Bolling Is Short S&P Futures; Bolling Is Short Nasdaq Futures; Bolling Owns Natural Gas Futures; Bolling Is Short (FXI) And Owns (FXI) Puts; Pete Najarian Is The Co-Founder Of optionmonster.com