NVDA - Turtle Beach shares plunge 31% on outlook and plans to not sell itself

For Turtle Beach ( NASDAQ: HEAR ), maybe the 110th time could be the charm?

The maker of headsets for videogames and other gaming gear saw its shares plunge more than 31% Tuesday, in part after Turtle Beach ( HEAR ) said it decided not to sell itself following a strategic review that included "discussions with 109 parties" about some kind of deal. Turtle Beach ( HEAR ) said that after all those talks, no one was in a position to make an acquisition "due to a number of factors including current market dynamics, the challenging financing environment [and] inflation affecting consumer discretionary spending."

As if that weren't enough, Turtle Beach ( HEAR ) also gave a full-year business outlook that did little to excite its investors.

The company said that for its 2023 fiscal year, it expects to lose between 90 cents and $1.35 a share, excluding one-time items, on revenue in a range of $250M to $275M, a far cry from the $366.4M in sales the company reported for all of 2021. Turtle Beach ( HEAR ) also reported second-quarter results that failed to meet Wall Street's expectations .

Martin Yang, of Oppenheimer, cut his rating on Turtle Beach's ( HEAR ) stock to perform, or the equivalent of neutral, from outperform, and said he wanted to see "better visibility on [the company's] end markets and in the board [and] management structure."

Turtle Beach's ( HEAR ) disappointing report and outlook suggested that the uncertain economy is having an effect on consumers and their discretionary spending on items such as videogames and accessories.

On Monday, gaming chip giant Nvidia ( NVDA ) added to that scenario when it released weaker-than-expected preliminary quarterly results that the company said were the result of soft sales in its gaming business .

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