ATVI FINALLY GETTING THE DUE RESPECT!!! CHEAP VALUATION $17+
Worldwide publisher of online and game console entertainment products Activision Blizzard (NASDAQ: ATVI) saw an 11% pop on Friday after posting a blowout quarter. The company not only beat both top and bottom line expectations but also issued a very bullish forecast for the upcoming quarter. Furthermore, the company crushed estimates in every single measurable area of its business, from having operating margins of 44% to solid video game sales for all of its big releases.
As a result, the stock is sitting at multi-year highs, yet from a valuation standpoint, it’s still cheap. The stock trades with a price/sales of 3.0 and at just 12 times next year’s earnings. Therefore, considering the fact that ATVI has traded virtually flat for four years, I think it’s due for a breakout and could go higher.