Activision Blizzard (ATVI)
Activision Blizzard (ATVI): Keeps humming alongBy Paul Goodwin, Chief Analyst, Cabot Emerging Markets Investor
From Cabot Wealth Advisory 10/5/15 Sign up for Cabot Wealth Advisory—it’s free!
My stock pick for today is a Activision Blizzard (ATVI), a stock that was covered in Cabot Top Ten Trader on September 21. I like any growth stock with a good combination of story, numbers and chart, but I was especially interested in this one, because I know World of Warcraft has been a huge earner in China.
Here’s what Mike Cintolo had to say about ATVI in that issue.
"This is a stock we recommended a few months ago, and it just keeps humming along. The latest bit of good news is that Activision’s newest game, Destiny: The Taken King, just set a record for the highest number of first-day downloads in the history of Sony PlayStation consoles. That’s important for Activision because it gives the company a worthy successor to Call of Duty, Skylanders and World of Warcraft, popular games Activision developed that no longer enjoy the same kind of sales growth they once did. Destiny’s record-breaking success should help Activision build on its second-quarter earnings momentum: earnings per share improved 117% year-over-year last quarter, and beat consensus analyst expectations on both the top and bottom lines. Two other new franchises that Activision created— Heroes of the Storm and Hearthstone—have helped spur the company’s recent growth. Along with the Destiny franchise (The Taken King is the franchise’s third installment), those three had a combined 70 million registered players at the end of the second quarter, generating $1.25 billion in non-GAAP revenue to date.
"ATVI shares were barely affected by the recent market downturn. The stock started the year at 20, shot up to 23 in February, and after trading sideways for three months, inched up to 26 in early June. It met resistance there until the stellar second-quarter earnings were released in early August, prompting a jump all the way up to 29. It dipped back down to 26 during the late-August correction, but within a week was back up to 29. Last week’s record-setting news pushed ATVI to another new high at 31. You can buy a little on any weakness and set your losses at around 27, which is the current 50-day moving average."
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|Activision Blizzard (ATVI)
3100 Ocean Park Boulevard
Santa Monica, California 90405
|Index Membership: N/A
Industry: Multimedia & Graphics Software
Full Time Employees: 6,690