King Digital Entertainment PLC (NYSE:KING) stock came down by 20% on Tuesday amid second-quarter earnings of $0.59 per share, excluding items, on $594 million in revenue. Company’s revenue went up by 30% compared to the same quarter a year earlier and profit is up by $165.4 million from $125.92 million the same quarter in 2013. Discussing the King Digital Entertainment PLC (NYSE:KING)’s stock in a program on CNBC, Jim Cramer said that the company has missed the expectations of analysts and it will face a hard time in the coming days. He added that the video game industry is becoming a difficult domain and King Digital Entertainment PLC (NYSE:KING) will have to do something out of the way to get back in business.
“[…] It was the biggest junk that came through the pipeline, by the way there were a lot of analysts there […] who were saying, ‘listen, the sentiment is too negative, so you have got to buy KING.’ No, the sentiment wasn’t negative enough and this video game business is very, very hard […],” said Cramer.
Many experts think that King Digital Entertainment PLC (NYSE:KING) must deplete its dependency on only one game, the Candy Crush Saga and must come up with something more innovative and entertaining to grab more sales because Candy Crush Saga is losing its popularity around the world. Experts also connected this tumble with the Candy Crush Saga or iOS which is losing its elevation and popularity. Jim Cramer said that the investors don’t want more dividends from King Digital Entertainment PLC (NYSE:KING) rather they want the company to boost earnings and revenue.