When a company’s computer systems are compromised, it is not surprising there is going to be a negative impact on its share price, though the price action following such an announcement can vary.
The above scenario applies to Take-Two Interactive Software (NASDAQ:TTWO), which is the Premarket Prep Stock Of The Day.
Recent Price Action: Similar to the S&P 500 index, the issue was in the red last week. After reaching its highest level since Aug. 16 at $137.43, the issue peaked during last Monday’s rally at $130.86 and retreated to end the session at $129.54.
Following a mild rebound on Tuesday and Wednesday of last week, the issue succumbed to market forces with two down days in a row to close on Friday at $124.19.
The Hack: Early Monday morning (Sept. 19) it was reported the company’s Grand Theft Auto VI Gameplay had been leaked online. As expected, traders seized on the issue and had it in the red by a substantial margin, far eclipsing the losses in the S&P 500 index futures on a percentage basis.
Related Link: After Uber Breach, Hackers Go After This US Gaming Company’s Ace Game
PreMarket Prep Take: When the issue was being covered on the show, it was already in the red by more than $5 at the $118 area. Co-host Dennis Dick was relieved he had exited the issue last week in an effort to raise his cash holding following the worse-than-expected CPI data on Tuesday.
The author of this article assessed the premarket action and alerted investors to multiple lows in the $117 to $118 range from late August and early September. Also, the issue had a void in price to fill from its Sept. 8 and 9 price action between $120.62 and $123.
TTWO Price Action: After a lower open, $121.95 versus $124.19, TTWO reached $120.06 in the first five minutes of the session and sharply reversed course. As of 1:45 p.m. EST, the ensuing rally found sellers just above the close at $124.21 the current high for the season.
There is limited daily resistance above that level as Friday’s high was at $127.55.
The discussion on the issue from Monday’s show can be found here:
