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NASDAQ:ATVI

Activision Blizzard (ATVI) Stock Price, News & Analysis

Notice: This company has been marked as potentially delisted and may not be actively trading.
Today's Range
$94.42
$94.42
50-Day Range
$91.82
$94.47
52-Week Range
$70.94
$94.57
Volume
1 shs
Average Volume
8.31 million shs
Market Capitalization
$74.29 billion
P/E Ratio
34.59
Dividend Yield
1.05%
Price Target
$94.50

Activision Blizzard MarketRank™ Stock Analysis

Analyst Rating
Hold
2.10 Rating Score
Upside/​Downside
0.1% Upside
$94.50 Price Target
Short Interest
N/A
Dividend Strength
Moderate
Based on Four Factors
Sustainability
-1.04
Upright™ Environmental Score
News Sentiment
N/A
Insider Trading
N/A
Proj. Earnings Growth
4.53%
From $3.75 to $3.92 Per Share

Overall MarketRank

New Rank-Based ScoringMarketRank is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company's weighted average against that of other companies.

0.49 out of 5 stars

Consumer Discretionary Sector

258th out of 270 stocks

Prepackaged Software Industry

184th out of 195 stocks

ATVI stock logo

About Activision Blizzard Stock (NASDAQ:ATVI)

Activision Blizzard, Inc. is a leading video game publisher that develops and publishes interactive entertainment software worldwide. The company aims to create engaging and immersive entertainment experiences that delight players worldwide. The company is headquartered in Santa Monica, California and was formed in 2008 through the merger of Activision, Inc. and Vivendi Games. Activision Blizzard operates through three segments: Activision Publishing, Blizzard Entertainment, and King Digital Entertainment.

Activision Publishing develops and publishes console, PC, and mobile devices games. The company's popular franchises include Call of Duty, Crash Bandicoot, and Spyro. Blizzard Entertainment, known for its hugely popular World of Warcraft game, develops and publishes games primarily for PC and mobile devices. King Digital Entertainment, the mobile game development segment, focuses on developing and publishing mobile games, with a portfolio that includes Candy Crush, Bubble Witch, and Farm Heroes.

The company's target market consists of gamers of all ages and levels of experience. Its key customers include gamers passionate about interactive entertainment, esports enthusiasts, and game developers seeking to collaborate with the company to develop new games.

Robert Kotick is the Chief Executive Officer of Activision Blizzard Inc. Kotick has been with the company since 1991 and has served as CEO since 2008. He is a seasoned executive with a background in finance and has overseen the company's growth into one of the world's leading video game publishers.

Over the past few years, Activision Blizzard has seen changing revenue growth, with 2021 full-year net revenues reaching $8.1 billion, up 18% from the year before. However, in 2022 the company saw a revenue decline for the first time in three years, losing nearly $1 billion in revenue from the previous year. The company's profit margins have remained stable, with an operating margin of approximately 30%. The company has a declining balance sheet, with cash flow going from $1.8 billion in reserves in 2021 to a $3.35 billion deficit in 2022. 

Activision Blizzard's current market capitalization is around $65 billion. The company's price-to-earnings ratio is higher than the industry average, and the company's price-to-book is also higher than the industry average. These valuation metrics suggest that investors are willing to pay a premium for the company's potential. 

Activision Blizzard's stock has shown solid performance over the years, with a price increase of over 125% since the beginning of 2013, when the company's most popular games started taking off. However, the recent past has seen the stock experience volatility, with sharp fluctuations in response to various news events.

One significant event that affected the company's stock price was the controversy surrounding the alleged mistreatment of female employees, which resulted in a lawsuit by the California Department of Fair Employment and Housing. In July 2021, the news caused Activision Blizzard's stock to drop by more than 10% in a single day. Although the share price has since recovered, the incident has highlighted the potential risks associated with social and environmental issues in the gaming industry.

More recently, in February 2022, the company reported better-than-expected earnings for the fourth quarter of 2021, driven by solid sales of its Call of Duty franchise and news of a possible takeover of the company from Microsoft. This positive news resulted in an uptick in the company's stock price. However, ongoing concerns about the gaming industry's regulatory environment and the increasing competition in the mobile gaming space could impact the company's future market performance.

Activision Blizzard has a robust pipeline of new games and franchises that could fuel growth in the coming years. The company also invests heavily in mobile gaming, intending to expand its user base in emerging markets such as India and China. Additionally, the company has made several strategic acquisitions in recent years, including purchasing King Digital, the maker of Candy Crush, giving the company a foothold in the mobile gaming market.

In addition to new product launches and acquisitions, Activision Blizzard is exploring opportunities to expand its existing franchises into new markets. For example, the company wants to bring its famous Call of Duty franchise to China, which could significantly increase its user base in the world's largest gaming market.

Like any company in the gaming industry, Activision Blizzard faces several risks and challenges that could impact its performance in the coming years. One such risk is the increasing competition from other gaming companies, particularly in the mobile gaming space. The company must continue to innovate and release high-quality games to stay ahead of its competitors.

Another risk is the potential for increased regulatory scrutiny. The gaming industry has come under increased regulatory pressure in recent years, particularly in China, where the government has cracked down on gaming companies to combat addiction among young people. Any significant regulatory changes could impact Activision Blizzard's ability to operate in key markets.

The company faces the risk of changing consumer preferences. Gaming is an industry driven by trends, and Activision Blizzard must stay ahead of these trends to remain relevant. If the company fails to adapt to changing consumer preferences, it could lose market share to competitors.

ATVI Stock News Headlines

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Company Calendar

Last Earnings
11/02/2021
Today
7/14/2024
Fiscal Year End
12/31/2024

Industry, Sector and Symbol

Industry
Prepackaged software
Sub-Industry
Home Entertainment Software
Current Symbol
NASDAQ:ATVI
CUSIP
00507V10
Employees
13,000
Year Founded
1979

Price Target and Rating

Average Stock Price Target
$94.50
High Stock Price Target
$96.00
Low Stock Price Target
$90.00
Potential Upside/Downside
+0.1%
Consensus Rating
Hold
Rating Score (0-4)
2.10
Research Coverage
10 Analysts

Profitability

Net Income
$1.51 billion
Pretax Margin
29.60%

Debt

Sales & Book Value

Annual Sales
$8.71 billion
Cash Flow
$3.38 per share
Book Value
$24.59 per share

Miscellaneous

Free Float
778,301,000
Market Cap
$74.29 billion
Optionable
Optionable
Beta
0.44

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Key Executives

Should I Buy Activision Blizzard Stock? ATVI Pros and Cons Explained

Pros

Here are some ways that investors could benefit from investing in Activision Blizzard, Inc.:

  • Activision Blizzard, Inc. has a strong institutional ownership percentage of 84.72%, indicating confidence from major investors.
  • The company's Fifty-Two Week Performance shows a positive trend of 26.06%, reflecting potential growth in the stock value.
  • Activision Blizzard, Inc. has a diverse portfolio of popular game franchises like Call of Duty, Overwatch, and Candy Crush, ensuring revenue streams from various sources.
  • The current stock price of $91.82 on the record date presents a potential entry point for investors looking to buy at a reasonable valuation.
  • With a large float size of 738,220,000 shares, there is ample liquidity in the market for trading ATVI stock.

Cons

Investors should be bearish about investing in Activision Blizzard, Inc. for these reasons:

  • Activision Blizzard, Inc. has a short percentage of float at 2.15%, indicating some bearish sentiment among investors.
  • The Month-To-Month Change Percentage in shares shorted is 16.7%, suggesting potential volatility in the stock price due to short-term trading activities.
  • The Days to Cover ratio of 1.5 may indicate that it could take some time to cover all short positions, leading to potential price fluctuations.
  • Despite the strong performance, the company faces competition in the gaming industry, which could impact market share and profitability.
  • Investors should consider the overall market conditions and economic outlook before making investment decisions in Activision Blizzard, Inc.
These pros and cons were generated based on recent news and financial data from MarketBeat in order to provide readers with the fastest and most accurate insights. They were last updated on Friday, July 5, 2024. Please send any questions or comments about these Activision Blizzard pros and cons to contact@marketbeat.com.

ATVI Stock Analysis - Frequently Asked Questions

How were Activision Blizzard's earnings last quarter?

Activision Blizzard, Inc. (NASDAQ:ATVI) issued its quarterly earnings data on Tuesday, November, 2nd. The company reported $0.72 EPS for the quarter, topping analysts' consensus estimates of $0.70 by $0.02. The firm had revenue of $1.88 billion for the quarter, compared to analyst estimates of $1.88 billion. Activision Blizzard had a net margin of 24.87% and a trailing twelve-month return on equity of 14.87%.
Read the conference call transcript
.

What is Robert A. Kotick's approval rating as Activision Blizzard's CEO?

128 employees have rated Activision Blizzard Chief Executive Officer Robert A. Kotick on Glassdoor.com. Robert A. Kotick has an approval rating of 50% among the company's employees. This puts Robert A. Kotick in the bottom 25% of approval ratings compared to other CEOs of publicly-traded companies. 59.0% of employees surveyed would recommend working at Activision Blizzard to a friend.

Does Activision Blizzard have any subsidiaries?

The following companies are subsidiaries of Activision Blizzard: Omniata, King.com, Major League Gaming Inc, California 7 Studios, Budcat Creations, DemonWare, RedOctane, and others.

What other stocks do shareholders of Activision Blizzard own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Activision Blizzard investors own include NVIDIA (NVDA), Walt Disney (DIS), Alibaba Group (BABA), Netflix (NFLX), PayPal (PYPL), Advanced Micro Devices (AMD) and Micron Technology (MU).

This page (NASDAQ:ATVI) was last updated on 7/14/2024 by MarketBeat.com Staff

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