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NASDAQ:ATVI

Activision Blizzard (ATVI) Stock Price, News & Analysis

Activision Blizzard logo

About Activision Blizzard Stock (NASDAQ:ATVI)

Key Stats

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
N/A
Consensus Rating
N/A

Company Overview

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.

Activision Blizzard Stock Analysis - MarketRank™

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24th Percentile Overall Score

ATVI MarketRank™: 

Activision Blizzard scored higher than 24% of companies evaluated by MarketBeat, and ranked 253rd out of 289 stocks in the consumer discretionary sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

  • Earnings Growth

    Earnings for Activision Blizzard are expected to grow by 4.53% in the coming year, from $3.75 to $3.92 per share.

  • Price to Earnings Ratio vs. the Market

    The P/E ratio of Activision Blizzard is 34.59, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 133.66.

  • Price to Earnings Ratio vs. Sector

    The P/E ratio of Activision Blizzard is 34.59, which means that it is trading at a more expensive P/E ratio than the Consumer Discretionary sector average P/E ratio of about 17.75.

  • Price to Earnings Growth Ratio

    Activision Blizzard has a PEG Ratio of 2.61. PEG Ratios above 1 indicate that a company could be overvalued.

  • Price to Book Value per Share Ratio

    Activision Blizzard has a P/B Ratio of 3.84. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

  • Short Interest

    There is no current short interest data available for ATVI.
  • Dividend Yield

    Activision Blizzard pays a meaningful dividend of 1.05%, higher than the bottom 25% of all stocks that pay dividends.

  • Dividend Growth

    Activision Blizzard does not have a long track record of dividend growth.

  • Dividend Coverage

    The dividend payout ratio of Activision Blizzard is 36.26%. This payout ratio is at a healthy, sustainable level, below 75%.

  • Dividend Sustainability

    Based on earnings estimates, Activision Blizzard will have a dividend payout ratio of 25.26% next year. This indicates that Activision Blizzard will be able to sustain or increase its dividend.

  • Read more about Activision Blizzard's dividend.
  • Short Interest

    There is no current short interest data available for ATVI.
  • News Coverage This Week

    MarketBeat has tracked 6 news articles for Activision Blizzard this week, compared to 4 articles on an average week.
  • Search Interest

    19 people have searched for ATVI on MarketBeat in the last 30 days. This is an increase of 90% compared to the previous 30 days.
  • Insider Buying vs. Insider Selling

    In the past three months, Activision Blizzard insiders have not sold or bought any company stock.

  • Percentage Held by Insiders

    Only 1.08% of the stock of Activision Blizzard is held by insiders.

  • Percentage Held by Institutions

    81.93% of the stock of Activision Blizzard is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

  • Read more about Activision Blizzard's insider trading history.
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ATVI Stock News Headlines

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ATVI Stock Analysis - Frequently Asked Questions

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

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

Based on aggregate information from My MarketBeat watchlists, some other companies that Activision Blizzard investors own include NVIDIA (NVDA), Meta Platforms (META), Advanced Micro Devices (AMD), Tesla (TSLA), Netflix (NFLX), Walt Disney (DIS) and Visa (V).

Company Calendar

Last Earnings
11/02/2021
Today
10/31/2024
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

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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This page (NASDAQ:ATVI) was last updated on 10/31/2024 by MarketBeat.com Staff
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