#2 - Activision Blizzard, Inc. (NASDAQ:ATVI)
Activision Blizzard, Inc. (NASDAQ: ATVI) Activision stock is on the move – only in the wrong direction. After an earnings call where the company reported a decline in active users for the third straight quarter (the stock dropped 10% off a previous decline of 25% in October), you can count Activision as another victim of the Fortnitecraze. While some of their stock’s decline is due to a lack of recognition of the changing business model in the gaming space, a significant chunk has to be attributed to the lukewarm response to its latest Call of Duty offering that featured a battle royale mode that has failed to curb the momentum enjoyed by other offerings such as Fortniteand PlayerUnknown’s Battlegrounds. Further adding to the company's short-term problems are revenue and earnings per share projections for the fourth quarter that is below analysts' estimates. Supporters of the stock will say that the business model has changed and pointed to Activision's strong projections for in-game purchases which will define the digital model, but what should matter to investors in the short term is how long it will take for the market to digest this new business model.
About Activision Blizzard
Activision Blizzard, Inc, together with its subsidiaries, develops and publishes interactive entertainment content and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through three segments: Activision, Blizzard, and King. It develops and distributes content and services on video game consoles, personal computers, and mobile devices, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Activision and Blizzard products.
Read More - Current Price
- $94.42
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 16 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $94.73 (0.3% Upside)
